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EXPLORING THE LINK BETWEEN LOCAL AND GLOBAL KNOWLEDGE SPILLOVERS: Evidence from Plant-Level Data

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  • Salvador Barrios
  • Luisito Bertinelli
  • Andreas Heinen
  • Eric Strobl

    ()
    (CREA, University of Luxembourg)

Abstract

We investigate the existence of local (i.e. within-country) and global (i.e. between-country) knowledge spillovers within a single analytical framework. Our analysis is based on an exhaustive database on Irish manufacturing plants covering the period 1986-1994 and focuses on the impact of R&D spillovers on productivity. Our results show that while the R&D undertaken by multinationals active in Ireland has had no significant impact on local plants’ productivity, these multinationals have, nevertheless, through their presence, favoured the diffusion of global R&D spillovers. We furthermore show that while domestic plants benefited from R&D spillovers emanating from other domestic firms, these spillovers had a much more limited spatial scope compared to multinational-presence induced spillovers. Foreign affiliates in turn, have directly gained from the size of the R&D stock in their origin country, but there is no evidence that foreign affiliates located in Ireland had benefited from local R&D spillovers.

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File URL: http://wwwfr.uni.lu/content/download/16892/214202/file/2008-01_Exploring%20the%20Link%20between%20local%20and%20global%20knowledge%20spillovers,%20Evidence%20from%20Plant-Level%20Data.pdf
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Bibliographic Info

Paper provided by Center for Research in Economic Analysis, University of Luxembourg in its series CREA Discussion Paper Series with number 08-01.

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Date of creation: 2008
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Handle: RePEc:luc:wpaper:08-01

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