International R&D Spillovers: A Re-Examination

25 Pages Posted: 15 Sep 2000 Last revised: 29 Jun 2010

See all articles by Frank R. Lichtenberg

Frank R. Lichtenberg

Columbia Business School - Finance and Economics; National Bureau of Economic Research (NBER); CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

Bruno van Pottelsberghe de la Potterie

Free University of Brussels - Solvay Business School; Université Libre de Bruxelles (ULB) - Department of Applied Economics (DULBEA); Centre for Economic Policy Research (CEPR)

Date Written: July 1996

Abstract

Coe and Helpman(1995) have measured the extent to which technology spills over between industrialized countries through the particular channel of trade flows. This paper re-examines two particular features of their study. First, we suggest that their functional form of how foreign R&D affects domestic productivity via imports is probably incorrect. We provide an alternative model which turns out to be more accurate, both theoretically and empirically. Second, we take into account two new potential channels of technology transfer: inward FDI and technology sourcing, as proxied by outward FDI. The empirical results show that outward FDI flows and imports flows are two simultaneous channels through which technology is internationally diffused. Inward FDI flows are not a significant channel of technology transfer. The hypothesis of technology sourcing associated with MNEs activities abroad is therefore confirmed while the widespread belief that inward FDI is a major channel of technology transfer is rejected.

Suggested Citation

Lichtenberg, Frank R. and van Pottelsberghe de la Potterie, Bruno, International R&D Spillovers: A Re-Examination (July 1996). NBER Working Paper No. w5668, Available at SSRN: https://ssrn.com/abstract=225572

Frank R. Lichtenberg (Contact Author)

Columbia Business School - Finance and Economics ( email )

3022 Broadway
504 Uris Hall, Dept. of Finance & Economics
New York, NY 10027
United States
212-854-4408 (Phone)
212-316-9219 (Fax)

HOME PAGE: http://https://www8.gsb.columbia.edu/cbs-directory/detail/frl1

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

Poschinger Str. 5
Munich, DE-81679
Germany

Bruno Van Pottelsberghe de la Potterie

Free University of Brussels - Solvay Business School

50 Avenue Roosevelt
Brussels 1050
Belgium

Université Libre de Bruxelles (ULB) - Department of Applied Economics (DULBEA) ( email )

Ave. Franklin D Roosevelt 50
Brussels, B-1050
Belgium

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
82
Abstract Views
1,527
rank
327,118
PlumX Metrics