The growth of ICT has paved a way for globalization and all countries are in some way affected with it. Globalization has led to trade liberalization which has allowed firms to operate in a number of countries. Globalization has paved a way for the investment of Multinational Enterprises in emerging economy. Literature shows that separately globalization and FDI can be used to increase technology capability and output of the host country.

The knowledge spillover, collaborative networks, increased competition, and development of indigenous human capital facilitated by globalization and FDI has made diffusion of knowledge easier. This study aims to investigate the nexus of globalization and FDI in predicting technology output of country. Regression analysis was used for data analysis. Concurrent and predictive validity was used to check the robustness of the findings. The results indicate that both globalization and FDI lead to higher technology output. However, mixed evidences were obtained about the interactive role of globalization and FDI in predicting technology output. The results indicate that combined effect of globalization and FDI can provide more nuanced account of the variation in the level of technology output of different countries.