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Exploring The Link Between Local And Global Knowledge Spillovers

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

Abstract

We measure the effect of R&D spillovers on plant productivity by taking account of (i) the national origin of the spillovers, (ii) the mechanism through which spillovers may flow (FDI and/or imports), (iii) the sectoral scope of spillovers, as well as (iv) their geographic scope, in a single analytical framework. Our analysis is based on an exhaustive database on Irish manufacturing plants covering the period 1986-1994. The results show that while domestic plants benefit from local R&D spillovers, these spillovers are spatially bounded. Domestic plants are also able to tap into the global R&D pool, but only via the presence of multinational plants located near them. In contrast, there is no evidence that foreign affiliates located in Ireland are recipients of local R&D spillovers. Foreign affiliates do, however, gain from the size of the R&D stock in their origin country.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 6239.

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Date of creation: 02 Aug 2007
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Handle: RePEc:pra:mprapa:6239

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Keywords: R&D; knwoledge spillovers; multinationals; international trade; Ireland;

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References

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Citations

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Cited by:
  1. Eberhardt, Markus & Helmers, Christian & Strauss, Hubert, 2010. "Do spillovers matter when estimating private returns to R&D?," Economic and Financial Reports 2010/1, European Investment Bank, Economics Department.
  2. Paul Cheshire & Stefano Magrini, 2008. "Urban Growth Drivers in a Europe of Sticky People and Implicit Boundaries," SERC Discussion Papers 0010, Spatial Economics Research Centre, LSE.
  3. Paul Cheshire & Stefano Magrini, 2008. "Urban Growth Drivers and Spatial Inequalities: Europe - a case with geographically sticky people," Working Papers 2008_32, Department of Economics, University of Venice "Ca' Foscari".

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