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Technology Spillovers and Innovation - the importance of domestic and foreign sources

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Author Info
Lööf, Hans () (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)

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Abstract

This paper asks whether there is evidence of higher innovation output from firms where there is more foreign activity in terms of foreign direct investments (FDI), trade and collaboration on innovation, or if proximity between innovators is more important. With a sample of about two-thirds of Swedish firms with at least 10 employees and by accounting for selectivity and simultaneity biases, sector specific effects and firm specific effects, we find robust evidence for import spill over. There is also support for international knowledge transfer to the local firm from foreign units indicating the importance of both inward and outward FDI. We only find some weak find association between proximity to local partners and innovation. The most important aspect of the local milieu on innovation is skilled labour.

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Publisher Info
Paper provided by Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies in its series Working Paper Series in Economics and Institutions of Innovation with number 83.

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Length: 44 pages
Date of creation: 28 Feb 2007
Date of revision: 29 Jun 2007
Handle: RePEc:hhs:cesisp:0083

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Postal: CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, SE-100 44 Stockholm, Sweden
Phone: +46 8 790 95 63
Web page: http://www.infra.kth.se/cesis/
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Related research
Keywords: Innovation; knowledge spillovers; proximity; trade; FDI;

Find related papers by JEL classification:
D21 - Microeconomics - - Production and Organizations - - - Firm Behavior
D21 - Microeconomics - - Production and Organizations - - - Firm Behavior
F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
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

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References listed on IDEAS
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