International Knowledge Spillovers through High-Tech Imports and R&D of Foreign-Owned Firms
26 Pages Posted: 28 Mar 2013
Date Written: February 1, 2013
The international transmission of knowledge through import spillovers, as a source of TFP growth, has received much attention in the literature. We investigate two additional direct channels through which R&D disseminates: the import of high-technology goods and the internationalization of business R&D. Building on an extensive dataset, covering both developing and industrial countries, we add foreign owned patents as a proxy for R&D activities of multinationals. While we confirm the significance of import spillovers for all countries included, we find additional spillovers for developing countries through the import of high-technology goods. Only developed economies seem to benefit from the diffusion of knowledge that originates through cross-border cooperation in R&D by multinationals.
Keywords: Productivity growth, technology diffusion, multinational enterprise
JEL Classification: F14, F23, O47
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