The pattern of international patenting and technology diffusion

Abstract

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.

Technology spillover effects and economic integration: evidence from integrating EU countries

“…Since relationships between countries are Table 3. Robustness test (1) for EU-12 and OECD-32 technology diffusion (Annual data for Greece (1982-2008), Ireland (1981-2008), Portugal (1982-2008 and Spain (1981Spain ( -2008)…”

“…Table A.5. Co-integration test results by KPSS (Lag:1; Lead:1); OECD-32, EU-12 and G7 (Annual data for Greece (1982-2008), Ireland (1981-2008), Portugal (1982-2008 and Spain (1981Spain ( -2008 Notes: * denotes that the co-integration is statistically significant at least at a 5% level. The null hypothesis is that there is co-integration (i.e.…”

“…The idea is that patenting domestic research efforts abroad determines the direction of technology and therefore technology diffusion. Based on patent applications from the World Intellectual Property Organization (WIPO), Hafner (2008) finds that patent-related spillover effects are present for a panel of 18 OECD countries between 1981 and 2001. The same study shows that there are no significant spillovers from bilateral trade, but confirms the impact of FDI on domestic labour productivity.…”

“…Studies by Jaffe and Trajtenberg (2002) and Hafner (2008) use international patenting patterns to determine the flow of technology, but ignore the impact of economic integration on acceding countries. To address these issues, I use time series for 1981-2008 to estimate the impact of foreign technology spillover effects on Greece, Ireland, Portugal and Spain, representing the integrating EU countries.…”

Trade Liberalization and Technology Diffusion

“…Following Keller (2004), the adoption of foreign technology by structurally backward countries pushes and strengthen their economic development as well: while bilateral trade transfers technology between trading partners, multinational firms diffuse technological knowledge through their affiliates abroad pushing those countries' capacity to innovate and grow 2 . Moreover, as proposed by Eaton and Kortum (1999) and quantified by Hafner (2008), the pattern of international patenting indicates where ideas come from and go to and therefore reflect the link between the source and the destination of transferred technology. Since relationships between countries are getting closer within economically integrating regions, spatial integration and technology diffusion lead to self‐reinforcing processes spurring and fostering economic development.…”