What Drives the International Transfer of Climate Change Mitigation Technologies? Empirical Evidence from Patent Data
Posted: 10 Apr 2014
Date Written: April 9, 2014
Technology transfer plays a key role in global efforts to reduce greenhouse gas emissions. In this paper, we characterize the factors that promote or hinder the international diffusion of climate-friendly technologies using detailed patent data from 96 countries for the period 1995-2007. The data provide strong evidence that lax Intellectual Property regimes have a strong and negative impact on the international diffusion of patented knowledge. Restrictions on international trade and foreign direct direct investment also hinder the diffusion of climate-friendly technologies. Surprisingly, local technological capabilities tend to discourage transfers. While broad indicators of technology capabilities are expected to facilitate transfers, this latter result stems from our technology-specific definition of local capabilities, which makes it possible to capture a substitution effect between local and foreign inventions.
Keywords: Climate change, Technology diffusion, Technology transfer
JEL Classification: O33, O34, Q54
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