International Technology Sourcing and Knowledge Spillovers: Evidence from OECD Countries

March 12, 2018

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Format: Chicago

Sophia Chen, and Estelle Dauchy. International Technology Sourcing and Knowledge Spillovers: Evidence from OECD Countries, (USA: International Monetary Fund, 2018) accessed December 22, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

How much do firms benefit from foreign R&D and through what channel? We construct a global network of corporate innovation using more than 1.5 million patents granted to firms in OECD countries. We test the “international technology sourcing” hypothesis that foreign innovation activities tap into foreign R&D and improve home productivity through knowledge spillovers. We find that firms with stronger inventor presence in technology frontier countries benefit disproportionately more from their R&D. The strength of knowledge spillovers depends on the direction of technology sourcing. Knowledge externality is larger for firms in technology frontier countries than for firms in non-frontier countries.

Subject: Financial institutions, Financial sector policy and analysis, Production, Productivity, Spillovers, Stocks, Technology, Total factor productivity

Keywords: Country control, Destination country, Firm productivity, Frontier country, Global, Innovation activity, Knowledge spillovers, Network, OECD country, Patent, Production function, Productivity, R&D, Source country, Spillovers, Stocks, Total factor productivity, WP

Publication Details

Pages:

38
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2018/051
Stock No:

WPIEA2018051
ISBN:

9781484345429
ISSN:

1018-5941

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