IDEAS home Printed from https://ideas.repec.org/a/taf/rjbsxx/v31y2016i4p441-461.html
   My bibliography  Save this article

Technology Spillovers and International Borders: A Spatial Econometric Analysis

Author

Listed:
  • Amjad Naveed
  • Nisar Ahmad

Abstract

The borders of the EU are open for the movement of resources but still there can be some strong negative effects of international borders on productivity and knowledge spillovers compared to the internal regional borders. These negative effects could be due to language barriers, cultural differences, local rules and regulation, legal issues, property rights, etc. These effects of international borders have an economic significance that need to be controlled when analyzing the regional knowledge spillovers. This aspect related to international borders has not been fully taken into account in the existing literature related to knowledge spillovers, therefore, ignoring this effect might under- or overestimate the effect of knowledge and technology spillovers. The results show that technology and knowledge spillovers are mainly coming from internal neighbor regions only, whereas spillovers across the international borders are statistically insignificant. Moreover, the results show that not properly incorporating border effects will lead to inaccurate estimates of the spillovers.

Suggested Citation

  • Amjad Naveed & Nisar Ahmad, 2016. "Technology Spillovers and International Borders: A Spatial Econometric Analysis," Journal of Borderlands Studies, Taylor & Francis Journals, vol. 31(4), pages 441-461, October.
    • Handle: RePEc:taf:rjbsxx:v:31:y:2016:i:4:p:441-461
    DOI: 10.1080/08865655.2016.1188669
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/08865655.2016.1188669
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/08865655.2016.1188669?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Kwon, Hyeog Ug, 2003. "Measuring the Rate of Return to R&D, Interindustry R&D Spillovers in Korean Manufacturing Industries," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 44(1), pages 49-57, June.
    2. Coe, David T. & Helpman, Elhanan, 1995. "International R&D spillovers," European Economic Review, Elsevier, vol. 39(5), pages 859-887, May.
    3. Daron Acemoglu & Philippe Aghion & Fabrizio Zilibotti, 2006. "Distance to Frontier, Selection, and Economic Growth," Journal of the European Economic Association, MIT Press, vol. 4(1), pages 37-74, March.
    4. Madsen, Jakob B., 2007. "Technology spillover through trade and TFP convergence: 135 years of evidence for the OECD countries," Journal of International Economics, Elsevier, vol. 72(2), pages 464-480, July.
    5. Ricardo J. Caballero & Adam B. Jaffe, 1993. "How High Are the Giants' Shoulders: An Empirical Assessment of Knowledge Spillovers and Creative Destruction in a Model of Economic Growth," NBER Chapters, in: NBER Macroeconomics Annual 1993, Volume 8, pages 15-86, National Bureau of Economic Research, Inc.
    6. Emanuela Marrocu & Raffaele Paci & Stefano Usai, 2013. "Productivity Growth In The Old And New Europe: The Role Of Agglomeration Externalities," Journal of Regional Science, Wiley Blackwell, vol. 53(3), pages 418-442, August.
    7. Zvi Griliches, 1998. "R&D and Productivity Growth at the Industry Level: Is There Still a Relationship?," NBER Chapters, in: R&D and Productivity: The Econometric Evidence, pages 213-240, National Bureau of Economic Research, Inc.
    8. Rosina Moreno & Raffaele Paci & Stefano Usai, 2006. "Innovation Clusters in the European Regions," European Planning Studies, Taylor & Francis Journals, vol. 14(9), pages 1235-1263, May.
    9. Diego Comin & Bart Hobijn, 2009. "Lobbies and Technology Diffusion," The Review of Economics and Statistics, MIT Press, vol. 91(2), pages 229-244, May.
    10. Carol Robbins, 2006. "The Impact of Gravity-Weighted Knowledge Spillovers on Productivity in Manufacturing," The Journal of Technology Transfer, Springer, vol. 31(1), pages 45-60, January.
    11. Zvi Griliches, 1998. "Issues in Assessing the Contribution of Research and Development to Productivity Growth," NBER Chapters, in: R&D and Productivity: The Econometric Evidence, pages 17-45, National Bureau of Economic Research, Inc.
    12. Harald Badinger & Peter Egger, 2011. "Estimation of higher‐order spatial autoregressive cross‐section models with heteroscedastic disturbances," Papers in Regional Science, Wiley Blackwell, vol. 90(1), pages 213-235, March.
    13. King, Robert G. & Levine, Ross, 1994. "Capital fundamentalism, economic development, and economic growth," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 40(1), pages 259-292, June.
    14. Giuseppe Arbia & Roberto Basile & Gianfranco Piras, 2005. "Using Spatial Panel Data in Modelling Regional Growth and Convergence," ISAE Working Papers 55, ISTAT - Italian National Institute of Statistics - (Rome, ITALY).
    15. Elhorst, J. Paul, 2003. "Unconditional maximum likelihood estimation of dynamic models for spatial panels," Research Report 03C27, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    16. Daniel L. Millimet & Thomas Osang, 2007. "Do state borders matter for U.S. intranational trade? The role of history and internal migration," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 40(1), pages 93-126, February.
    17. Gong, Guan & Keller, Wolfgang, 2003. "Convergence and polarization in global income levels: a review of recent results on the role of international technology diffusion," Research Policy, Elsevier, vol. 32(6), pages 1055-1079, June.
    18. Zvi Griliches, 1984. "R&D, Patents, and Productivity," NBER Books, National Bureau of Economic Research, Inc, number gril84-1, March.
    19. James E. Anderson & Eric van Wincoop, 2001. "Borders, Trade and Welfare," Boston College Working Papers in Economics 508, Boston College Department of Economics.
    20. Thomas Scherngell & Manfred M. Fischer & Martin Reismann, 2007. "Total factor productivity effects of interregional knowledge spillovers in manufacturing industries across Europe," Romanian Journal of Regional Science, Romanian Regional Science Association, vol. 1(1), pages 1-16, December.
    21. repec:dgr:rugsom:03c27 is not listed on IDEAS
    22. Richard R. Nelson & Edmond S. Phelps, 1965. "Investment in Humans, Technological Diffusion and Economic Growth," Cowles Foundation Discussion Papers 189, Cowles Foundation for Research in Economics, Yale University.
    23. Adriana Liberto & Stefano Usai, 2013. "TFP Convergence Across European Regions: A Comparative Spatial Dynamics Analysis," Advances in Spatial Science, in: Riccardo Crescenzi & Marco Percoco (ed.), Geography, Institutions and Regional Economic Performance, edition 127, pages 39-58, Springer.
    24. Goto, Akira & Suzuki, Kazuyuki, 1989. "R&D Capital, Rate of Return on R&D Investment and Spillover of R&D in Japanese Manufacturing Industries," The Review of Economics and Statistics, MIT Press, vol. 71(4), pages 555-564, November.
    25. Bart Los & Bart Verspagen, 2000. "R&D spillovers and productivity: Evidence from U.S. manufacturing microdata," Empirical Economics, Springer, vol. 25(1), pages 127-148.
    26. Diego A. Comin & Bart Hobijn & Emilie Rovito, 2006. "World Technology Usage Lags," NBER Working Papers 12677, National Bureau of Economic Research, Inc.
    27. J. Elhorst, 2010. "Applied Spatial Econometrics: Raising the Bar," Spatial Economic Analysis, Taylor & Francis Journals, vol. 5(1), pages 9-28.
    28. Laura Bottazzi & Giovanni Peri, 2000. "Innovation and Spillovers: Evidence from European Regions," CESifo Working Paper Series 340, CESifo.
    29. Nazrul Islam, 1995. "Growth Empirics: A Panel Data Approach," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(4), pages 1127-1170.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Roberta Capello & Andrea Caragliu & Ugo Fratesi, 2018. "Compensation modes of border effects in cross‐border regions," Journal of Regional Science, Wiley Blackwell, vol. 58(4), pages 759-785, September.
    2. Amjad Naveed & Nisar Ahmad & Rayhaneh Esmaeilzadeh & Amber Naz, 2019. "Self-Employment Dynamics of Immigrants and Natives: Individual-level Analysis for the Canadian Labour Market," Sustainability, MDPI, vol. 11(23), pages 1-22, November.
    3. Hu, Dengfeng & You, Kefei & Esiyok, Bulent, 2021. "Foreign direct investment among developing markets and its technological impact on host: Evidence from spatial analysis of Chinese investment in Africa," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    4. Muhammad Akbar & Abdullah & Amjad Naveed & Shabib Haider Syed, 2022. "Does an Improvement in Rural Infrastructure Contribute to Alleviate Poverty in Pakistan? A Spatial Econometric Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 162(1), pages 475-499, July.
    5. Syed Mujahid Hussain & Amjad Naveed & Sheraz Ahmed & Nisar Ahmad, 2022. "Disaggregating the impact of oil prices on European industrial equity indices: a spatial econometric analysis," Empirical Economics, Springer, vol. 62(6), pages 2673-2692, June.
    6. Amjad Naveed & Nisar Ahmad & Amber Naz & Aziza Zhuparova, 2023. "Economic development through women’s economic rights: a panel data analysis," International Economics and Economic Policy, Springer, vol. 20(2), pages 257-278, May.
    7. Weidenfeld, Adi & Makkonen, Teemu & Clifton, Nick, 2021. "From interregional knowledge networks to systems," Technological Forecasting and Social Change, Elsevier, vol. 171(C).
    8. Alvina Sabah Idrees & Saima Sarwar, 2023. "Spatial convergence clubs and innovation persistence: a country-group comparison of international spatial spillover of innovation capabilities," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(5), pages 4121-4152, October.
    9. Xuan Vinh Vo, Thi Tuan Anh Tran and Van Thang Nguyen, 2020. "Investigating the Economic Relationship between Provinces in Vietnam:A Spatial Regression Approach," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 45(1), pages 47-60, March.
    10. Chengliang Liu & Qingbin Guo, 2019. "Technology Spillover Effect in China: The Spatiotemporal Evolution and Its Drivers," Sustainability, MDPI, vol. 11(6), pages 1-14, March.
    11. Mantas Markauskas & Asta Baliute, 2021. "Technological progress spillover effect in Lithuanian manufacturing industry," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 16(4), pages 783-806, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ugur, Mehmet & Trushin, Eshref & Solomon, Edna & Guidi, Francesco, 2016. "R&D and productivity in OECD firms and industries: A hierarchical meta-regression analysis," Research Policy, Elsevier, vol. 45(10), pages 2069-2086.
    2. Fischer, Manfred M. & Scherngell, Thomas & Reismann, Martin, 2008. "Knowledge spillovers and total factor productivity. Evidence using a spatial panel data model," MPRA Paper 77762, University Library of Munich, Germany.
    3. Wakelin, Katharine, 2001. "Productivity growth and R&D expenditure in UK manufacturing firms," Research Policy, Elsevier, vol. 30(7), pages 1079-1090, August.
    4. Andrea Bonaccorsi & Daniele Biancardi & Mabel Sanchez Barrioluengo & Federico Biagi, 2019. "Study on Higher Education Institutions and Local Development," JRC Research Reports JRC117272, Joint Research Centre.
    5. Hall, Bronwyn H. & Mairesse, Jacques & Mohnen, Pierre, 2010. "Measuring the Returns to R&D," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 2, chapter 0, pages 1033-1082, Elsevier.
    6. Johanna Vogel, 2015. "The two faces of R&D and human capital: Evidence from Western European regions," Papers in Regional Science, Wiley Blackwell, vol. 94(3), pages 525-551, August.
    7. Okada, Yosuke, 2005. "Competition and productivity in Japanese manufacturing industries," Journal of the Japanese and International Economies, Elsevier, vol. 19(4), pages 586-616, December.
    8. Ana Lara GÓMEZ, 2015. "Technological Spillovers of Research Infrastructures," Departmental Working Papers 2015-18, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    9. Castellacci, Fulvio, 2008. "Technology clubs, technology gaps and growth trajectories," Structural Change and Economic Dynamics, Elsevier, vol. 19(4), pages 301-314, December.
    10. Daniel J. Wilson, 2002. "Is Embodied Technology the Result of Upstream R&D? Industry-Level Evidence," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 5(2), pages 285-317, April.
    11. Antonelli, Cristiano & Krafft, Jackie & Quatraro, Francesco, 2010. "Recombinant knowledge and growth: The case of ICTs," Structural Change and Economic Dynamics, Elsevier, vol. 21(1), pages 50-69, March.
    12. Keller, Wolfgang, 2002. "Trade and the Transmission of Technology," Journal of Economic Growth, Springer, vol. 7(1), pages 5-24, March.
    13. Christ, Julian P., 2009. "The geography and co-location of European technology-specific co-inventorship networks," Violette Reihe: Schriftenreihe des Promotionsschwerpunkts "Globalisierung und Beschäftigung" 31/2010, University of Hohenheim, Carl von Ossietzky University Oldenburg, Evangelisches Studienwerk.
    14. Kuen‐Hung Tsai & Jiann‐Chyuan Wang, 2004. "R&D Productivity and the Spillover Effects of High‐tech Industry on the Traditional Manufacturing Sector: The Case of Taiwan," The World Economy, Wiley Blackwell, vol. 27(10), pages 1555-1570, November.
    15. James P. LeSage & Manfred M. Fischer, 2012. "Estimates of the Impact of Static and Dynamic Knowledge Spillovers on Regional Factor Productivity," International Regional Science Review, , vol. 35(1), pages 103-127, January.
    16. Henry, Michael & Kneller, Richard & Milner, Chris, 2009. "Trade, technology transfer and national efficiency in developing countries," European Economic Review, Elsevier, vol. 53(2), pages 237-254, February.
    17. G Medda & C. Piga, 2004. "R&S e spillover industriali: un'analisi sulle imprese italiane," Working Paper CRENoS 200406, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    18. Robin Johnson & W. A. Razzak & Steven Stillman, 2007. "Has New Zealand benefited from its investments in research & development?," Applied Economics, Taylor & Francis Journals, vol. 39(19), pages 2425-2440.
    19. Jakob Madsen, 2008. "Semi-endogenous versus Schumpeterian growth models: testing the knowledge production function using international data," Journal of Economic Growth, Springer, vol. 13(1), pages 1-26, March.
    20. Antonio Cubel & Vicente Esteve & Maria Teresa Sanchis & Juan A. Sanchis-Llopis, 2014. "The effect of foreign and domestic patents on total factor productivity during the second half of the 20th century," Working Papers 06/14, Instituto Universitario de Análisis Económico y Social.

    More about this item

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O49 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Other
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:rjbsxx:v:31:y:2016:i:4:p:441-461. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/rjbs20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.