Spillover Asymmetries and a Comparative Technological Advantage

Abstract

This paper offers a framework for examining technology spillovers extant between research teams. A policy-relevant finding is that firms' research organizations must strive to absorb foreign technology. The result of a technology spillover imbalance or asymmetry is that from a country or policy perspective, even for countries sustaining a superior number of world-class research teams, a comparative technological advantage may be lost if the domestic R/D teams fail to absorb and exploit technology as aggressively as foreign rivals.

Spillover effects and the evolution of firm clusters

“…Questions like that are particularly relevant for regional planners who are interested in attracting or building up a certain industry cluster in their region by providing appropriate infrastructure and incentives for the emergence of spillovers and by attracting initial investments. A few authors have provided policy recommendations on these issues based on empirical studies (Chuang and Lin, 1999;Porter, 1998) or static models (Carlisle, 1992). However, they did not explicitly take into account the interaction of distinct clusters in the market and the dynamics of industry evolution.…”