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Exploring The Link Between Local And Global Knowledge Spillovers

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Author Info
Barrios, Salvador
Bertinelli, Luisito
Heinen, Andreas
Strobl, Eric

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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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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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Related research
Keywords: R&D knwoledge spillovers multinationals international trade Ireland

Find related papers by JEL classification:
O30 - Economic Development, Technological Change, and Growth - - Technological Change - - - General
F14 - International Economics - - Trade - - - Country and Industry Studies of Trade
R12 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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