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Geographic Localization of International Technology Diffusion

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Author Info
Keller, Wolfgang

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Abstract

Convergence in per capita income across countries turns on whether technological knowledge spillovers are global or local in a large class of models. This Paper estimates the amount of spillovers from R&D expenditures in major industrialized countries on a geographic basis. A new data set is used which encompasses most of the world's innovative activity at the industry-level between the years 1970 and 1995. First, I find that technological knowledge is to a substantial degree local, not global, as the benefits from foreign spillovers are declining with distance. I estimate that the distance at which the amount of technological knowledge is halved is about 1,200 kilometres. Second, while technological knowledge has become considerably more global over time, strong spatial patterns do persist. I also find that language skills are important for diffusion, which suggests that a substantial portion of international technology diffusion is unrelated to trade in high-technology goods.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 2706.

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Date of creation: Feb 2001
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Handle: RePEc:cpr:ceprdp:2706

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Related research
Keywords: Agglomeration; Convergence; Divergence; Economic Geography; Growth; International Trade; Knowledge Spillovers; Research And Development; Technological Change; Total Factor Productivity;

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Find related papers by JEL classification:
E0 - Macroeconomics and Monetary Economics - - General
F10 - International Economics - - Trade - - - General
F20 - International Economics - - International Factor Movements and International Business - - - General
O30 - Economic Development, Technological Change, and Growth - - Technological Change - - - General

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