International Technology Diffusion

Abstract

I discuss the concept and empirical importance of international technology diffusion from the point of view of recent work on endogenous technological change. In this literature, technology is viewed as technological knowledge. I first review major concepts and discuss the relation of international technology diffusion with other mechanisms of economic growth in open economies. The main section of the Paper provides a review of recent empirical results on (i) basic results in international technology diffusion; (ii) the importance of specific channels of diffusion, in particular trade and foreign direct investment; (iii) the spatial distribution of technological knowledge and (iv) other issues.

Keywords: Convergence, divergence, foreign direct investment, disembodied technology, embodied technology, spillovers, learning externalities, spatial productivity effects, knowledge globalization

JEL Classification: F00, F10, O30