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Ethnic Scientific Communities and International Technology Diffusion

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Author Info
William R. Kerr () (Harvard Business School, Entrepreneurial Management Unit)

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Abstract

This study explores the importance of knowledge transfer for international technology diffusion by examining ethnic scientific and entrepreneurial communities in the US and their ties to their home countries. US ethnic research communities are quantified by applying an ethnic-name database to individual patent records. International patent citations con.rm knowledge diffuses through ethnic networks, and manufacturing output in foreign countries increases with an elasticity of 0.1-0.3 to stronger scientific integration with the US frontier. To address reverse-causality concerns, reduced-form specifications exploit exogenous changes in US immigration quotas. Consistent with a model of sector reallocation, output growth in less developed economies is facilitated by employment gains, while more advanced economies experience sharper increases in labor productivity. The ethnic transfer mechanism is especially strong in high-tech industries and among Chinese economies. The findings suggest channels for transferring codified and tacit knowledge partly shape the effective technology frontiers of developing and emerging economies.

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Publisher Info
Paper provided by Harvard Business School in its series Harvard Business School Working Papers with number 06-022.

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Length: 41 pages
Date of creation: Nov 2005
Date of revision: Apr 2007
Handle: RePEc:hbs:wpaper:06-022

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Related research
Keywords: Technology Transfer; Tacit Knowledge; Productivity; Patents; Innovation; Research and Development; Entrepreneurship; Immigration; Networks.;

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Find related papers by JEL classification:
F22 - International Economics - - International Factor Movements and International Business - - - International Migration
J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations
J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers
O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives
O32 - Economic Development, Technological Change, and Growth - - Technological Change - - - Management of Technological Innovation and R&D
O33 - Economic Development, Technological Change, and Growth - - Technological Change - - - Technological Change: Choices and Consequences; Diffusion Processes
O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Stuart S. Rosenthal & William C. Strange, 2003. "Geography, Industrial Organization, and Agglomeration," Center for Policy Research Working Papers 56, Center for Policy Research, Maxwell School, Syracuse University. [Downloadable!]
    Other versions:
  2. Parente, Stephen L & Prescott, Edward C, 1994. "Barriers to Technology Adoption and Development," Journal of Political Economy, University of Chicago Press, vol. 102(2), pages 298-321, April. [Downloadable!] (restricted)
  3. William R. Kerr, 2007. "The Ethnic Composition of US Inventors," Harvard Business School Working Papers 08-006, Harvard Business School. [Downloadable!]
  4. Peter Thompson, 2004. "Patent Citations and the Geography of Knowledge Spillovers: Evidence from Inventor- and Examiner-Added Citations," Working Papers 0405, Florida International University, Department of Economics, revised Jun 2005. [Downloadable!]
    Other versions:
  5. James E. Rauch, 2001. "Business and Social Networks in International Trade," Journal of Economic Literature, American Economic Association, vol. 39(4), pages 1177-1203, December. [Downloadable!] (restricted)
  6. Mankiw, N Gregory & Romer, David & Weil, David N, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, MIT Press, vol. 107(2), pages 407-37, May. [Downloadable!] (restricted)
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  7. Richard R. Nelson & Edmond S. Phelps, 1965. "Investment in Humans, Technological Diffusion and Economic Growth," Cowles Foundation Discussion Papers 189, Cowles Foundation, Yale University. [Downloadable!]
  8. Ramana Nanda & Tarun Khanna, 2007. "Diasporas and Domestic Entrepreneurs: Evidence from the Indian Software Industry," Harvard Business School Working Papers 08-003, Harvard Business School, revised Feb 2009. [Downloadable!]
  9. James E. Rauch & Vitor Trindade, 2002. "Ethnic Chinese Networks In International Trade," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 116-130, February. [Downloadable!] (restricted)
    Other versions:
  10. William R. Kerr, 2008. "Ethnic Scientific Communities and International Technology Diffusion," The Review of Economics and Statistics, MIT Press, vol. 90(3), pages 518-537, 03. [Downloadable!] (restricted)
    Other versions:
  11. Giovanni Peri, 2005. "Determinants of Knowledge Flows and Their Effect on Innovation," The Review of Economics and Statistics, MIT Press, vol. 87(2), pages 308-322, 06. [Downloadable!] (restricted)
  12. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages S71-102, October. [Downloadable!] (restricted)
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  13. Rivera-Batiz, Luis A & Romer, Paul M, 1991. "Economic Integration and Endogenous Growth," The Quarterly Journal of Economics, MIT Press, vol. 106(2), pages 531-55, May. [Downloadable!] (restricted)
    Other versions:
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. William Kerr & Shihe Fu, 2008. "The survey of industrial R&D—patent database link project," The Journal of Technology Transfer, Springer, vol. 33(2), pages 173-186, April. [Downloadable!] (restricted)
  2. Elisabetta Lodigiani, 2009. "Diaspora Externalities as a Cornerstone of the New Brain Drain Literature," Development Working Papers 277, Centro Studi Luca d\'Agliano, University of Milano. [Downloadable!]
  3. William Kerr & Shihe Fu, 2006. "The Industry R&D Survey: Patent Database Link Project," Working Papers 06-28, Center for Economic Studies, U.S. Census Bureau. [Downloadable!]
    Other versions:
  4. Edward L. Glaeser & William R. Kerr, 2008. "Local Industrial Conditions and Entrepreneurship: How Much of the Spatial Distribution Can We Explain?," NBER Working Papers 14407, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  5. Glenn Ellison & Edward L. Glaeser & William Kerr, 2007. "What Causes Industry Agglomeration? Evidence from Coagglomeration Patterns," NBER Working Papers 13068, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  6. Luca MARCHIORI & I-Ling SHEN & FrŽdŽric DOCQUIER, 2009. "Brain drain in globalization A general equilibrium analysis from the sending countriesÕ perspective," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2009013, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES). [Downloadable!]
    Other versions:
  7. William R. Kerr, 2008. "The Agglomeration of US Ethnic Inventors," Harvard Business School Working Papers 09-003, Harvard Business School. [Downloadable!]
  8. Diego Puga & Daniel Trefler, 2007. "Wake up and Smell the Ginseng: International Trade and the Rise of Incremental Innovation in Low-Wage Countries," Development Working Papers 222, Centro Studi Luca d\'Agliano, University of Milano. [Downloadable!]
    Other versions:
  9. William R. Kerr, 2007. "The Ethnic Composition of US Inventors," Harvard Business School Working Papers 08-006, Harvard Business School. [Downloadable!]
  10. Ramana Nanda & Tarun Khanna, 2007. "Diasporas and Domestic Entrepreneurs: Evidence from the Indian Software Industry," Harvard Business School Working Papers 08-003, Harvard Business School, revised Feb 2009. [Downloadable!]
  11. William R. Kerr & William F. Lincoln, 2008. "The Supply Side of Innovation: H-1B Visa Reforms and US Ethnic Invention," Harvard Business School Working Papers 09-005, Harvard Business School. [Downloadable!]
  12. Ajay Agrawal & Devesh Kapur & John McHale, 2007. "Birds of a Feather - Better Together? Exploring the Optimal Spatial Distribution of Ethnic Inventors," NBER Working Papers 12823, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  13. William R. Kerr, 2005. "Ethnic Scientific Communities and International Technology Diffusion," Harvard Business School Working Papers 06-022, Harvard Business School, revised Apr 2007. [Downloadable!]
    Other versions:
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