International Technology Sourcing and Knowledge Spillovers: Evidence from OECD Countries

Author/Editor:

Sophia Chen ; Estelle Dauchy

Publication Date:

March 12, 2018

Electronic Access:

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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.

Series:

Working Paper No. 18/51

English

Publication Date:

March 12, 2018

ISBN/ISSN:

9781484345429/1018-5941

Stock No:

WPIEA2018051

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

38

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