In order to fully realize the positive effects of FDI certain preconditions
should be fulfilled. FDI will have a positive impact on economic growth in those
countries that have a high level of appropriate educated human capital and where
institutions are more effective in protecting IPRs. The educational structure of the
labor force in line with the needs of the economy is an important factor of
competitiveness and economic growth, but also an important precondition for
international transfer of modern technology. Investments in R&D in public and
private sector indirectly affect the increase in the number of protected intellectual
property (particularly patents), what has a positive effect on GDP growth, i.e. the
economic growth. In general, higher investments in education and R&D create
new knowledge and technologies which can result in an increased number of
protected intellectual property. Commercialization of protected intellectual
property generates revenues affecting the increase in total revenues, and thus to
an increase in GDP of a certain country i.e. economic growth.