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How The Globalization Of R&D Competition Affects Trade And Growth

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  • GWANGHOON LEE

Abstract

The implications of international R&D competition on trade and growth are investigated. The model is one in which a separate R&D sector competes with the manufacturing sector to secure human capital, and technology is licensed to manufacturers by the winner of a pre‐emptive R&D competition. The results show that globalization of R&D competition leads to trade between countries (even identical countries), because the result of competition leads to a reallocation of human capital between sectors. The winning country exports technology and traditional goods, while the loser exports manufactured goods. Globalization with indiscriminate technology licensing increases the world's economic growth rate.

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  • Gwanghoon Lee, 2004. "How The Globalization Of R&D Competition Affects Trade And Growth," The Japanese Economic Review, Japanese Economic Association, vol. 55(3), pages 267-285, September.
    • Handle: RePEc:bla:jecrev:v:55:y:2004:i:3:p:267-285
    DOI: 10.1111/j.1468-5876.2004.00276.x
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    1. Grossman, Gene M. & Helpman, Elhanan, 1995. "Technology and trade," Handbook of International Economics, in: G. M. Grossman & K. Rogoff (ed.), Handbook of International Economics, edition 1, volume 3, chapter 25, pages 1279-1337, Elsevier.
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    Cited by:

    1. Chun‐ping Chang & Yung‐hsiang Ying, 2008. "The Generative Power Of Air Freight In The Trade Openness – Economic Growth Nexus In African Countries," South African Journal of Economics, Economic Society of South Africa, vol. 76(3), pages 493-512, September.
    2. Yelena Kalyuzhnova & Michael Kaser, 2006. "Prudential Management of Hydrocarbon Revenues in Resource-rich Transition Economies," Post-Communist Economies, Taylor & Francis Journals, vol. 18(2), pages 167-187.
    3. Dachs, Bernhard, 2017. "Internationalisation of R&D: A Review of Drivers, Impacts, and new Lines of Research," MPRA Paper 83367, University Library of Munich, Germany.

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