Imports of goods that embody foreign technology can raise a country’s output directly as inputs into production and indirectly through reverse engineering of these goods, contributing to domestic imitation and innovation. This paper quantifies spillovers from high technology imports to domestic imitation and innovation in both developed and developing countries. It then considers the contributi...

Two models where productivity growth is caused by spillovers from R&D are analysed using a sample of nine manufacturing industries in six large OECD-countries between 1979 and 1991. The first model is based on traditional productivity analysis where growth in R&D stocks causes productivity growth. The second model is based on the endogenous growth literature where the level of R&D expenditures ...

Abstract We investigate the existence of local (within-country) and global (between-country) knowledge spillovers within a single analytical framework by considering specifically the role of agglomeration economies in fostering interactions between these two types of externalities. Our study is based on a database of Irish manufacturing foreign multinational and domestic plants covering the per...

We analyze the relation between technological spillovers and R&D cooperation in a duopoly experiment based on the well-known model of d’Aspremont and Jacquemin. For scenarios without and with full spillovers, two noncooperative treatments are run, one without and one with non-binding communication possibilities, and one cooperative treatment, with binding contract possibilities. We find that wi...

We explore enforcement spillovers when sanctions at one entity influence behavior at other entities. Our model illustrates when spillovers arise from a regulatory channel and when they arise from a channel not previously emphasized: product markets. Our model motivates empirically-refutable hypotheses, which we test using data from Clean Water Act manufacturers. We find that penalties create po...

We review the recent literature on technological change and diffusion to shed new light on the evolution of the world’s cross-country income distribution. Technology is viewed as non-rival knowledge in the sense that firms in more than one country can simultaneously use it. R&D investments generate often also a return outside the innovating firm itself; these knowledge externalities are called ...

The geography of innovation traditionally concentrates on localised knowledge spillovers, yet neglects collaboration networks as a means to access knowledge outside the region. Using publication and patent data for 1316 regions in the EU27 plus Norway and Switzerland, we find that both localised knowledge spillovers and the knowledge spillovers stemming from collaboration affect the innovative ...

In this paper we present a dynamic model of a firm which decides whether to outsource parts of its production to a less developed economy where wages and the level of technology are lower. Outsourcing reduces production costs but is associated with spillovers to foreign potential competitors. Spillovers over time increase productivity of firms in the foreign country and make them stronger compe...

This paper develops an open economy growth model in which firm heterogeneity increases the gains from trade. Technology spillovers from incumbent firms to entrants cause the productivity threshold for firm survival to grow over time as competition becomes tougher. By raising the profits of exporters, trade increases the entry rate and generates a dynamic selection effect that leads to higher gr...

This paper studies the impact of the process of technological change on the distribution of productivities and pro...ts across sectors. We ...nd that if technological progress a¤ects high-tech and traditional sectors di¤erently, the impact of changes in the determinants of economic growth may differ depending on which is the actual change. When an economy is growing faster due to an increase in...