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The pattern of international patenting and technology diffusion

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The article focuses on the impact of R&D expenditure on labour productivity using international patent applications as a technology diffusion indicator. Considering the relationship between research and productivity, the pattern of international patenting reflects the channel between the source and the destination of transferred technology. Accounting for nonstationarity and cointegration, I find that patent-related foreign R&D spillovers are present for a panel of 18 OECD countries. Moreover, nonG7 OECD countries benefit more from foreign rather than domestic R&D activities. Estimates also show that there is no significant spillover effect from bilateral trade, but confirm the impact of FDI on domestic labour productivity.

Document Type: Research Article


Affiliations: Department of Social and Economic Science, Otto-Friedrich-University Bamberg, Feldkirchenstr. 21, 96052 Bamberg, Germany

Publication date: November 1, 2008

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