Looking for International Knowledge Spillovers A Review of the Literature with Suggestions for New Approaches

  • Lee G. Branstetter
Chapter

Abstract

This paper reviews the recent empirical literature on international knowledge spillovers. I start by summarizing the theoretical models that have highlighted the potential importance of these spillovers. Then, drawing upon the older micro productivity research tradition, I lay out a simple conceptual framework (though not a formal theoretical framework) for thinking about the various kinds of knowledge transfers that may exist, how they might be mediated, and the means by which their effects might be traced empirically. I then review some influential empirical papers, demonstrating that empirical work to date may very well not have identified the effects the authors set out to measure. Finally, I describe some promising new approaches which may allow researchers in this field to identify more precisely, both conceptually and empirically, certain kinds of international knowledge spillovers.

Keywords

Knowledge Spillover Input Price Total Factor Productivity Growth NBER Working Paper Japanese Firm 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Aitken, Brian, Hanson, G., Harrison, A. (1994). — “Spillovers, Foreign Investment, and Export Behavior”, NBER Working Paper No. 4967. Google Scholar
  2. Akerlof, G. (1970). — “The Market for ‘Lemons’: Quality Uncertainty and the Market Mechanism”, Quarterly Journal of Economics’, 84(3).Google Scholar
  3. Andrew, B., Jones, C. (1996). — “Comparing Apples to Oranges: Productivit Convergence Across Countries and Industries”, American Economic Review, December 1996.Google Scholar
  4. Bernstein, J., Mohnen, P. (1994). — “International R&D Spillovers Between U.S. and Japanese R&D Intensive Sectors”, National Bureau of Economic Research Working Paper 4682. Google Scholar
  5. Bernstein, J., Yan, X. (1995). — “International R&D Spillovers Between Canadian and Japanese Industries”, NBER Working Paper 5401. Google Scholar
  6. Blomstrom, M., Kokko, A. (1996). — “Multinational Corporations and Spillovers”, National Bureau of Economic Research Working Paper. Google Scholar
  7. Blundell, R., Griffith, R., Van Reenan, J. (1994). — “Dynamic Count Data Models of Technological Innovation”, mimeo, ESRC Center for Microeconomic Analysis of Fiscal Policy.Google Scholar
  8. Caballero, R., Jaffe, A. (1994). — “How High Are the Giants’ Shoulders?” in 1994 Macroeconomics Annual, National Bureau of Economic Research.Google Scholar
  9. Bangtian, C, Kao, Ch. (1995). — “International R&D Spillovers Revisited: An Application of Panel Data with Cointegration”, Department of Economics and Center for Policy Research, Syracuse University, mimeo. Google Scholar
  10. Coe, D., Helpman, E. (1995). — “International R&D Spillovers”, European Economic Review, 39(5).Google Scholar
  11. Coe, D., Helpman, E., Hoffmaister, A. (1995). — “North-South R&D Spillovers”, NBER Working Paper. Google Scholar
  12. Cohen, W., Levinthal, D. (1989). — “Innovation and Learning: The Two Faces of R&D”, The Economic Journal, No. 99. Google Scholar
  13. Ethier, W. (1982). — “National and International Returns to Scale in the Modern Theory of International Trade”, American Economic Review, 72, pp. 389–405.Google Scholar
  14. Feenstra, R. (1992). — “How Costly is Protectionism?” Journal of Economic Perspectives, Vol. 6, No. 6.Google Scholar
  15. Feenstra, R. (1996). — “Trade and Uneven Growth”, Journal of Development Economics, February.Google Scholar
  16. Goto, A. (1993). — Nihon no Gijutsu Kakushin to Sangyo Soshiki (Japan’s Technological Progress and Industrial Organization), Tokyo: University of Tokyo Press.Google Scholar
  17. Griliches, Z. ed. (1984). — R&D, Patents, and Productivity, Chicago: University of Chicago Press.Google Scholar
  18. Griliches, Z. (1979). — “Issues in Assessing the Contribution of R&D to Productivity Growth”, Bell Journal of Economics, 10 (1), pp. 92–116.CrossRefGoogle Scholar
  19. Griliches, Z. (1992). — “The Search for R&D Spillovers”, Scandinavian Journal of Economics, 94, Supplement, pp. 29–47.CrossRefGoogle Scholar
  20. Griliches, Z., Hausman, J. (1986). — “Errors in Variables in Panel Data”, Journal of Econometrics, 41 (1), pp. 93–118.CrossRefGoogle Scholar
  21. Griliches, Z., Mairesse, J. (1995). — “Production Functions-the Search for Identification”, NBER Working Paper. Google Scholar
  22. Griliches, Z., Klette, T. (1997). — “Empirical Patterns of Firm Growth and R&D Investment: A Quality Ladder Model Interpretation”, NBER Working paper #5945. Google Scholar
  23. Grossman, G., Helpman, El. (1990). — “Comparative Advantage and Long-Run Growth”, American Economic Review, vol. 80, No. 4.Google Scholar
  24. Grossman, G., Helpman, El. (1991). — Innovation and Growth in the Global Economy, Cambridge: The MIT Press. Google Scholar
  25. Grossman, G., Helpman, El. (1995). — “Technology and Trade”, in Handbook of International Economics, vol. 3, edited by Gene Grossman and Kenneth Rogoff.Google Scholar
  26. Hall, B., Griliches, Z., Hausman, J. (1986). — “Patents and R&D-Is There a Lag?” International Economic Review, 27, pp. 265–283.CrossRefGoogle Scholar
  27. Hall, B. (1993). — “Has the Rate of Return Declined?” The Brookings Papers on Economic Activity, vol. 2: Microeconomics.Google Scholar
  28. Hausman, J., Hall, B., Griliches, Z. (1984). — “Econometric Models for Count Data with an Application to the Patents-R&D Rerlationship”, Econometrica, 52, 4.Google Scholar
  29. Fumio, H., Inouye, T. (1991). — “The Relationship Between Firm Growth and Q with Multiple Capital Goods: Theory and Evidence from Panel Data on Japanese Firm”, Econometrica, 59(3).Google Scholar
  30. Elhanan, H., Krugman, P. (1985). — Market Structure and Foreign Trade: Increasing Returns Imperfect Competition, and the International Economy, (Cambridge, MIT Press).Google Scholar
  31. Elhanan, H., Krugman, P. (1989). — Trade Policy and Market Structure, (Cambridge, MIT Press).Google Scholar
  32. Irwin, D., Klenow, P. (1994). — “Learning by Doing Spillovers in the Semiconductor Industry”, Journal of Political Economy, 102 (6).Google Scholar
  33. Jaffe, A (1986). — “Technological Opportunity and Spillover of R&D: Evidence from Firms’ Patents, Profits, and Market Value”, American Economic Review, 76, pp. 984–1001.Google Scholar
  34. Jaffe, A., Trajtenberg, M., Henderson, R. (1993). — “Geographic Localization of Knowledge Spilloversas Evidenced by Patent Citations”, Quarterly Journal of Economics, 108 (3).Google Scholar
  35. Jaffe, A., Trajtenberg, M. (1996). — “Flows of Knowledge Spillovers”, working paper presented at the Strasbourg Conference on the Economics and Econometrics of Innovation.Google Scholar
  36. Jones, C. (1995). — “R&D-Based Models of Economic Growth”, Journal of Political Economy, vol. 103, No. 4.Google Scholar
  37. Keller, W. (1995). — “International R&D Spillover and Intersectoral Trade Flows: Do They Match?”, Yale University manuscript. Google Scholar
  38. Keller, W. (1996). — “Absorptive Capacity”, Journal of Development Economics. Google Scholar
  39. Keller, W. (1996). — “Are International R&D Spillovers Trade-related? Analyzing Spillovers among Randomly Matched Trade Partners”, working paper, UW-Madison, Department of Economics.Google Scholar
  40. Yuko, K., Mody, As. (1996). — “Private and Public Information for Foreign Investment Decision”, Working paper. Google Scholar
  41. Klette, Tor Jacob (1994). — “R&D, Scope Economies, and Company Structure: A ‘Not-so-Fixed-Effect’ Model of Plant Performance”, Statistics Norway Research Department mimeo. Google Scholar
  42. Krugman, P. (1984). — “Import Protection as Export Promotion: International Competition in the Presence of Oligopoly and Economies of Scale”, in Henryk Kierzhowski, ed., Monopolistic Competition and Foreign Trade, (Clarendon Press).Google Scholar
  43. Krugman, P. (1987). — “The Narrow Moving Band, the Dutch Disease, and the Competitive Conséquences of Mrs. Thatcher: Notes on Trade in the Presence of Dynamics Scale Economies”, Journal of Development Economics, 27, pp. 41–55.CrossRefGoogle Scholar
  44. Krugman, P. (1990). — The Age of Diminished Expectations, (Cambridge, The MIT Press).Google Scholar
  45. Krugman, P. (1992). — Rethinking International Trade, (Cambridge, The MIT Press).Google Scholar
  46. Krugman, P. ed. (1986). — Strategic Trade Policy and the New International Economics, (Cambridge, The MIT Press).Google Scholar
  47. Keun, K., Scherer, F. M. (1992). — “Reactions to High-Tech Import Competition”, The Review of Economics and Statistics, pp. 202–212.Google Scholar
  48. Levin, R. D. et al (1987). — “Appropriating the Returns from Industrial Research and Development”, Brooking Papers on Economic Activity, Vol. 3, pp. 783–820CrossRefGoogle Scholar
  49. Lieberman, M. (1984). — “The Learning Curve and Pricing in the Chemical Processing Industries”, Rand Journal of Economics. Google Scholar
  50. Mansfield, E. (1985). — “How Rapidly Does New Industrial Technology Leak Out?” Journal of Industrial Economics, 34, pp. 217–223.CrossRefGoogle Scholar
  51. Montalvo, J., Yafeh, Y. (1994). — “A Micro-Econometric Analysis of Technology Transfer: The Case of Licensing Agreements of Japanese Firms”, International Journal of Industrial Organization, Vol. 12, No. 2.Google Scholar
  52. Nadiri, M. I. (1993). — “Innovations and Technological Spillovers”, NBER Working Paper No. 4423. Google Scholar
  53. Nelson, R. (1988). — “Modelling the Connections in the Cross Section Between Technical Progress and R&D Intensity”, Rand Journal of Economics, 19, pp. 478–85.CrossRefGoogle Scholar
  54. Hiroyuki, O. (1983). — “R&D Expenditures, Royalty Payments, and Sales Growth in Japanese Manufacturing Corporations”, The Journal of Industrial Economics, Vol. XXXII, No. 1.Google Scholar
  55. Park, W. (1995). — “International R&D Spillovers and OECD Economic Growth”, Economic Inquiry, Vol. 23, No. 4.Google Scholar
  56. Rauch, J. (1995). — “Search Costs in International Trade”, NBER Working Paper. Google Scholar
  57. Rivera-Batiz, L., Romer, P. (1991). — “Economic Integration and Endogenous Growth”, Quarterly Journal of Economics, Vol. 56, pp. 531–555.CrossRefGoogle Scholar
  58. Romer, P. (1990). — “Endogenous Technical Change”, Journal of Political Economy, 98, S71–S102.CrossRefGoogle Scholar
  59. Scherer, F. M. (1982). — “Interindustry Technology Flows and Productivity Growth”, Review of Economics and Statistics, LXIV, pp. 627–634.CrossRefGoogle Scholar
  60. Science and Technology Agency, Government of Japan (1991), Gijutsu Yoran (Technology Indicators). Google Scholar
  61. Spence, A. Michael (1984). — “Cost Reduction, Competition, and Industry Perform ance”, Econometrica, 50, pp. 483–499.Google Scholar
  62. Teece, D. (1976). — The Multinational Corporation and the Resource Cost of Technology Transfer, (Cambridge, MA, Ballinger Publishing Company).Google Scholar
  63. Trefler, D. (1993). — “International Factor Price Differences: Leontief Was Right!”, Journal of Political Economy, vol. 101, No. 6.Google Scholar
  64. Trefler, D. (1995). — “The Case of the Mising Trade and Other Mysteries”, American Economic Review,Google Scholar
  65. Tyson, Laura D’Andrea (1993). — Who’s Bashing Whom?: Trade Conflict in High- Technology Industries, Washington: Institute for International Economics.Google Scholar
  66. Vernon, R. ed. (1970). — The Technology Factor in International Trade, NBER, distributed by Columbia University Press.Google Scholar
  67. Wakasugi, R. (1986). — Gijutsu Kakushin to Kenkyu Kaihatsu no Keizai Bunseki: Nihon no Kigyo Kodo to Sangyo Seisaku (The Economic Analysis of Research and Development and Technological Progress: Japanese Firm Activity and Industrial Policy), Tokyo: Toyo Keizai Shimposha.Google Scholar
  68. Young, A. (1991). — “Learning by Doing and the Dynamic Effects of International Trade”, Quarterly Journal of Economics, 106, pp. 369–406.CrossRefGoogle Scholar

Copyright information

© Springer Science+Business Media Dordrecht 2000

Authors and Affiliations

  • Lee G. Branstetter
    • 1
  1. 1.U. C. Davis, NBERUSA

Personalised recommendations