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International Knowledge Spillovers to Developing Countries: The Case of Indonesia

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  • Jojo Jacob
  • Adam Szirmai

Abstract

The successful industrialization and catch up of countries in the East Asian region gave rise to an important debate concerning the role played by technological learning and knowledge creation. This paper seeks to examine this issue for Indonesia, a second‐tier newly industrializing country. It focuses on the relative importance of learning from imported inputs vis‐à‐vis other factors influencing productivity in manufacturing. The concept of learning is operationalized drawing on the literature on technology spillovers on the one hand, and the literature on catch up à la Abramovitz, on the other. Our results indicate that knowledge spillovers have become significant contributors to labor productivity growth after the liberalization of the Indonesian economy.

Suggested Citation

  • Jojo Jacob & Adam Szirmai, 2007. "International Knowledge Spillovers to Developing Countries: The Case of Indonesia," Review of Development Economics, Wiley Blackwell, vol. 11(3), pages 550-565, August.
    • Handle: RePEc:bla:rdevec:v:11:y:2007:i:3:p:550-565
    DOI: 10.1111/j.1467-9361.2007.00360.x
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    References listed on IDEAS

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    1. Jojo Jacob & Adam Szirmai, 2006. "International Trade and Knowledge Spillovers: The Case of Indonesian Manufacturing," Working Papers 06-01, Eindhoven Center for Innovation Studies, revised Jan 2006.
    2. Banerjee, Anindya & Dolado, Juan J. & Galbraith, John W. & Hendry, David, 1993. "Co-integration, Error Correction, and the Econometric Analysis of Non-Stationary Data," OUP Catalogue, Oxford University Press, number 9780198288107.
    3. Hill,Hal, 2000. "The Indonesian Economy," Cambridge Books, Cambridge University Press, number 9780521663670.
    4. Marcel P. Timmer, 2000. "The Dynamics of Asian Manufacturing," Books, Edward Elgar Publishing, number 1927.
    5. Linsu Kim, 1999. "Learning and Innovation in Economic Development," Books, Edward Elgar Publishing, number 1690.
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    Cited by:

    1. Theresia Gunawan & Jojo Jacob & Geert Duysters, 2016. "Network ties and entrepreneurial orientation: Innovative performance of SMEs in a developing country," International Entrepreneurship and Management Journal, Springer, vol. 12(2), pages 575-599, June.
    2. Kesidou, Effie & Romijn, Henny, 2008. "Do Local Knowledge Spillovers Matter for Development? An Empirical Study of Uruguay's Software Cluster," World Development, Elsevier, vol. 36(10), pages 2004-2028, October.
    3. Isabel-Maria Bodas Freitas & Jojo Jacob & Lili Wang & Zibiao Li, 2023. "Energy use and exporting: an analysis of Chinese firms," Journal of Evolutionary Economics, Springer, vol. 33(1), pages 179-207, January.
    4. Lichao Wu & Lili Wang & Niels J. Philipsen & Xinyi Fang, 2025. "The impact of eco-innovation on environmental performance in different regional settings: new evidence from Chinese cities," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(4), pages 9211-9232, April.
    5. Kesidou, Effie & Szirmai, Adam, 2008. "Local Knowledge Spillovers, Innovation and Economic Performance in Developing Countries: A discussion of alternative specifications," MERIT Working Papers 2008-033, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    6. Jacob, Jojo & Sasso, Simone, 2015. "Foreign direct investment and technology spillovers in low and middle-income countries: A comparative cross-sectoral analysis," MERIT Working Papers 2015-035, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    7. Theresia Gunawan & Jojo Jacob & Geert Duysters, 2013. "Entrepreneurial Orientation and Network Ties: Innovative Performance of SMEs in an Emerging-Economy Manufacturing Cluster," Working Papers 2013/28, Maastricht School of Management.

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