Globalization and Knowledge Spillover: International Direct Investment, Exports and Patents
AbstractThis paper examines the impact of the three main channels of international trade on domestic innovation, namely outward direct investment, inward direct investment (IDI) and exports. The number of Triadic patents serves as a proxy for innovation. The data set contains 37 countries that are considered to be highly competitive in the world market, covering the period 1994 to 2005. The empirical results show that increased exports and outward direct investment are able to stimulate an increase in patent output. In contrast, IDI exhibits a negative relationship with domestic patents. The paper shows that the impact of IDI on domestic innovation is characterized by two forces, and the positive effect of cross-border mergers and acquisitions by foreigners is less than the negative effect of the remaining IDI.
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Bibliographic InfoPaper provided by Kyoto University, Institute of Economic Research in its series KIER Working Papers with number 721.
Date of creation: Aug 2010
Date of revision:
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Postal: Yoshida-Honmachi, Sakyo-ku, Kyoto 606-8501
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More information through EDIRC
International direct investment; Export; Triadic Patent; Outward Direct Investment; Inward Direct Investment; R&D; negative binomial model;
Other versions of this item:
- Chia-Lin Chang & Sung-Po Chen & Michael McAleer, 2012. "Globalization and Knowledge Spillover: International Direct Investment, Exports and Patents," Documentos del Instituto Complutense de AnÃ¡lisis EconÃ³mico 2012-16, Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales.
- Chang, C-L. & Chen, S-P. & McAleer, M.J., 2010. "Globalization and Knowledge Spillover: International Direct Investment, Exports and Patents," Econometric Institute Report EI 2010-55, Erasmus University Rotterdam, Econometric Institute.
- Chia-Lin Chang & Sung-Po Chen & Michael McAleer, 2010. "Globalization and Knowledge Spillover: International Direct Investment, Exports and Patents," Working Papers in Economics 10/54, University of Canterbury, Department of Economics and Finance.
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
- O30 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - General
- O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-09-11 (All new papers)
- NEP-CSE-2010-09-11 (Economics of Strategic Management)
- NEP-INO-2010-09-11 (Innovation)
- NEP-IPR-2010-09-11 (Intellectual Property Rights)
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.:
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