This paper will test the importance of the relationship between geographic distribution and clustering of foreign firms and the influence of human capital and skill present in the regions, generally represented by major cities, on the location choice strategy and innovation activity of foreign investors across regions in the host economy of a developing nation. | The impact of human capital and skill availability on attraction of foreign direct investment FDI into regions within developing economies International Journal of Management IJM Volume 9 Issue 3 May June 2018 pp. 139 163 Article ID IJM_09_03_015 Available online at http ijm JType IJM amp VType 9 amp IType 3 Journal Impact Factor 2016 Calculated by GISI ISSN Print 0976-6502 and ISSN Online 0976-6510 IAEME Publication THE IMPACT OF HUMAN CAPITAL AND SKILL AVAILABILITY ON ATTRACTION OF FOREIGN DIRECT INVESTMENT FDI INTO REGIONS WITHIN DEVELOPING ECONOMIES Arkadiusz Mironko Indiana University East United States ABSTRACT When making a strategic location choice multinational corporations MNCs examine a number of conditions which influence the investment before settling on the location choice that includes human capital and availability of skilled workforce. This paper will test the importance of the relationship between geographic distribution and clustering of foreign firms and the influence of human capital and skill present in the regions generally represented by major cities on the location choice strategy and innovation activity of foreign investors across regions in the host economy of a developing nation. Testing the data on the location of foreign firms and skilled workforce among other factors in the regions across Poland this study finds that a higher level of presence of skilled workforce in the regions tends to attract higher value-added and service-related foreign subsidiaries into them hence furthering the development of the host cities and the industries with higher amounts of foreign investment tend to narrow their industrial specialization in some regions including also smaller regions such as Podkarpackie while Mazowieckie the leading region continues to attract higher value-added and service FDI despite the highest labor cost. Key words Human Capital Skilled Workforce Location Choice .
