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

Author

Listed:
  • 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.

Suggested Citation

  • Salvador Barrios & Luisito Bertinelli & Andreas Heinen & Eric Strobl, 2008. "EXPLORING THE LINK BETWEEN LOCAL AND GLOBAL KNOWLEDGE SPILLOVERS: Evidence from Plant-Level Data," DEM Discussion Paper Series 08-01, Department of Economics at the University of Luxembourg.
    • Handle: RePEc:luc:wpaper:08-01
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    References listed on IDEAS

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    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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