Frontier Technology, Absorptive Capacity and Distance

GEP Research Paper No. 02/24

29 Pages Posted: 24 Jun 2003

Multiple version iconThere are 2 versions of this paper

Date Written: October 2002


The recent literature on international technology diffusion has demonstrated the positive effect improvements in foreign country productivity can have on domestic productivity. Using a sample of 9 manufacturing industries in 12 OECD countries over the period 1972 to 1992 we search to find evidence that absorptive capacity and physical distance are important for technology transfer. We find strong evidence that the level of productivity depends on human capital, that the effect of physical distance are weakest at the end of the time period and in some industries and that R&D is important for productivity but not technology transfer.

Keywords: technology transfer, absorptive capacity, productivity, OECD

JEL Classification: 03, 057, I60

Suggested Citation

Kneller, Richard, Frontier Technology, Absorptive Capacity and Distance (October 2002). GEP Research Paper No. 02/24. Available at SSRN: or

Richard Kneller (Contact Author)

University of Nottingham ( email )

University Park
Nottingham, NG8 1BB
United Kingdom

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