Starting from the seminal work of Arrow (1962), new models of endogenous growth theory stress the importance of knowledge spillovers between firms, i.e. the fact that the technological know-how of one firm may positively effect the technological know-how of another firm without full compensation (Romer, 1986; Grossman and Helpman, 1991). In particular, spatial diffusion of knowledge is consider...

A renewed interest has been growing recently for the spatial dimension of trade and knowledge flows. Several contributions have shown that knowledge proximity matters in mediating flows of knowledge and that knowledge spillovers tend to occur within limited geographical boundaries. Theoretical works have also shown that geographical concentration of knowledge spillovers may play a fundamental r...

Though the process of knowledge spillovers was a prominent topic in the early endogenous growth models of Romer (1986) and Lucas (1988), more recent modeling has eschewed explicit knowledge spillover mechanisms in favor of a greater emphasis on innovation and research and development (R&D) expenditure. The Schumpeterian models of Aghion and Howitt (1992), among others, have identified innovativ...

In this paper, I analyze recent findings by Coe and Helpman (1995) of trade-related international R&D spillovers. I show generally that randomly created bilateral trade shares also give rise to large estimated international R&D spillovers; often, in fact, to larger estimated spillover effects which are more precisely estimated than by employing the ’true’ bilateral trade shares. This casts some...

With reference to Lambertini (2003), Lin (2004) correctly points out that, if R&D efforts for process innovation are endogenous, then process and product R&D are strategic complements. Then, he also proves that the opposite holds when spillovers are nil. Objecting to Lin’s second claim, I show that monopoly profits are everywhere increasing in the extent of information sharing within the firm. ...

Income convergence across countries turns on whether technological knowledge spillovers are global or local. I estimate the amount of spillovers from R&D expenditures on a geographic basis, using a new data set which encompasses most of the world’s innovative activity between 1970 and 1995. I find that technology is to a substantial degree local, not global, as the benefits from spillovers are ...

Although there is evidence that CO2-efficiency enhancing innovations in one country diffuse into other countries to contribute to the goals of climate change mitigation, very little is known about the conditions under which such international spillovers are most likely to take place. Our contribution in the present article seeks to address this gap by examining whether the strength of cross-bor...

The endogenous growth literature has stimulated empirical research into links between trade and growth in general and international knowledge spillovers in particular. Results relating to the latter have been mixed and the issue of the appropriate construction of the spillover variable remains contentious. In this paper we develop measures taking account of whether knowledge is a public or priv...

Productivity determinants of the urban domestic electricity sector in a crosssection of EU countries are examined to unveil the existence of two forms of spillover effects: those from foreign firms (foreign spillovers) and those related to spatial interactions (spatial spillovers). The empirical analysis also assesses the importance of industrial disaggregation in the context of the ongoing pol...

Knowledge spillovers through worker mobility between firms, found in previous research, imply that knowledge production within firms creates a positive externality to the hiring firms and their workers. We calculate the shares in the gains from spillovers retained by these parties using matched employer–employee data from Danish manufacturing. We find that around two-thirds of the total output ...