Some empirical evidence on the relation between trade and international R&D spillovers (original) (raw)

On indirect trade-related R&D spillovers. The role of the international trade network

Investigate how the World Trade Web (WTW) (Fagiolo et al., 2008; DeBenedictis & Tajoli, 2008) affects knowledge diffusion between countries and the impact of foreign R&D on domestic productivity; Improve the notion of indirect R&D spillovers -"Economic" distance between countries in the WTW; Average Propagation Length (APL) of R&D spillovers.

International trade and R&D spillovers

Journal of International Economics, 96(1), 138-149, 2015

Departing from the usual tenets of proportionality between cross-border trade flows and knowledge spillovers, we investigate whether relatively intense trade relationships are associated with particularly large international R&D spillovers. A nonlinear specification nesting the hypothesis of global and trade-unrelated R&D spillovers is estimated on a sample of 24 advanced countries over 1971-2004. We find evidence that trade patterns positively affect the international transmission of knowledge, in particular when we consider bilateral trade flows that, thanks to the estimation of an auxiliary gravity model, are normalized for the size and the distance of the trading partners. Finally, we discuss the patterns of the bilateral relationships characterized by both relatively intense trade and large R&D spillovers.

On `indirect' trade-related R&D spillovers

European Economic Review, 2005

An influential literature argues that trade promotes knowledge flows and technology transmission between trading partners. This literature focuses on 'direct' R&D spillovers which are related to the levels of R&D produced by the trading partners. In this paper we argue that 'indirect' trade-related R&D spillovers also take place between countries, even if they do not trade with each other. These 'indirect' spillovers are associated with available rather than with produced levels of R&D. Our empirical results suggest that these 'indirect' trade-related spillovers are at least as important as the 'direct' ones, and strengthen the view that trade does matter for the international transmission of R&D. They also suggest that, due to the existence of these 'indirect' effects, bilateral trade patterns are relatively less important as determinants of the level of foreign R&D spillovers acquired through trade.

An empirical note on international R&D spillovers

2013

Whether international R&D spillovers are global and trade-related is still a debated issue. By adopting two specifications that nest models previously estimated in the literature, we test the hypothesis that international R&D spillovers are global and trade-unrelated for a sample of OECD countries over the period 1971-2004. In particular, via a randomization exercise, we reject the null hypothesis of a “global pool of technology” and show that there are partitions of countries associated with relatively strong/weak knowledge spillovers. Then, we estimate a nonlinear specification that includes simultaneously geographical distance and international trade among the determinants of domestic TFP. We find robust evidence that both factors affect how foreign knowledge impacts on the domestic productivity of each recipient country.

Are international R&D spillovers trade-related?

European Economic Review, 1998

In this paper, I analyze recent findings by Coe and Helpman (1995) on trade-related international R&D spillovers. A Monte-Carlo-based robustness test is proposed which compares the elasticity of domestic productivity with respect to foreign R&D estimated by Coe and Helpman with an elasticity which is based on counterfactual international trade patterns. It is shown that also these, randomly created trade patterns give rise to positive international R&D spillover estimates, which are often larger, and explain more of the variation in productivity across countries than if 'true' bilateral trade patterns are employed. The finding casts doubt on the claim that patterns of international trade are important in driving R&D spillovers.

On indirect trade-related R&D spillovers: the “Average Propagation Length” of foreign R&D

Structural Change and Economic Dynamics, 22, 227–237, 2011

The paper estimates the impact on Total Factor Productivity of trade-related R&D spillovers by accounting for the economic distance between countries. The Average Propagation Length foreign R&D covers to reach a domestic country is used in building the foreign available R&D stock and to estimate its TFP impact vs. that of the domestic R&D stock. With respect to 20 OECD countries in the period 1995-2005, the impact on TFP of the available foreign R&D stock is greater than that of the domestic one. Results support the models that recognize indirect trade-related R&D spillovers and provide for them a more accurate interpretation.

International R&D Spillovers: A Re-Examwation

Coe and Helpman (1995) have measured the extent to which technology spills over between industrialized countries through the particular channel of trade flows, This paper reexamines two particular features of their study. First, we suggest that their functional form of how foreign R&D affects domestic productivity via imports is probably incorrect. We provide an alternative model which turns out to be more accurate, both theoretically and empirically. Second, we take into account two new potential channels of technology transfer: inward FDI and technology sourcing, as proxied by outward FDI. The empirical results show that outward FDI flows and imports flows are two simultaneous channels through which technology is internationally diffused. Inward FDI flows are not a significant channel of technology transfer. The hypothesis of technology sourcing associated with MNEs activities abroad is therefore confirmed while the widespread belief that inward FDI is a major channel of technology transfer is rejected.

On ’Indirect ’ Trade-Related R&D Spillovers∗ Olivier

2016

An influential literature argues that trade promotes knowledge flows and tech-nology transmission between trading partners. This literature focuses on ‘di-rect ’ R&D spillovers which are related to the levels of R&D produced by the trading partners. In this paper we argue that ‘indirect ’ trade-related R&D spillovers also take place between countries, even if they do not trade with each other. These ‘indirect ’ spillovers are associated with available rather than with produced levels of R&D. Our empirical results suggest that these ‘indi-rect ’ trade-related spillovers are at least as important as the ‘direct ’ ones, and strengthen the view that trade does matter for the international transmission of R&D. They also suggest that, due to the existence of these ‘indirect ’ effects, bilateral trade patterns are relatively less important as determinants of the level of foreign R&D spillovers acquired through trade.

International R&D Spillovers: A Re-Examination

Coe and Helpman (1995) have measured the extent to which technology spills over between industrialized countries through the particular channel of trade flows, This paper reexamines two particular features of their study. First, we suggest that their functional form of how foreign R&D affects domestic productivity via imports is probably incorrect. We provide an alternative model which turns out to be more accurate, both theoretically and empirically. Second, we take into account two new potential channels of technology transfer: inward FDI and technology sourcing, as proxied by outward FDI. The empirical results show that outward FDI flows and imports flows are two simultaneous channels through which technology is internationally diffused. Inward FDI flows are not a significant channel of technology transfer. The hypothesis of technology sourcing associated with MNEs activities abroad is therefore confirmed while the widespread belief that inward FDI is a major channel of technology transfer is rejected.