IDEAS home Printed from https://ideas.repec.org/a/eee/ecmode/v82y2019icp74-86.html
   My bibliography  Save this article

Barriers to the international diffusion of technological innovations

Author

Listed:
  • Kumar, Sanjesh
  • Singh, Baljeet

Abstract

This paper examines the role of diffusion barriers in explaining differences in technological innovation across countries through an index of economic complexity. The barriers are captured by genealogical distance from the world’s technology frontier. We hypothesize that greater the genetic distance between a country’s population and the technology innovator the lower will be levels of technological innovations. Utilizing data for 100 countries, our empirical estimates offer solid support for the negative influence of genetic distance from the global frontier on innovation. A number of sensitivity checks also confirm that our findings are robust. Overall, the evidence lends strong support to the barriers effect of genetic distance from the frontier whereby it prevents the diffusion of productivity enhancing innovations across countries by affecting the country’s capability to imitate and adopt frontier innovations and technologies.

Suggested Citation

  • Kumar, Sanjesh & Singh, Baljeet, 2019. "Barriers to the international diffusion of technological innovations," Economic Modelling, Elsevier, vol. 82(C), pages 74-86.
  • Handle: RePEc:eee:ecmode:v:82:y:2019:i:c:p:74-86
    DOI: 10.1016/j.econmod.2019.08.015
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0264999319311113
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.econmod.2019.08.015?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
    2. Philippe Aghion & Diego Comin & Peter Howitt & Isabel Tecu, 2016. "When Does Domestic Savings Matter for Economic Growth?," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 64(3), pages 381-407, August.
    3. Wu, Jie & Ma, Zhenzhong & Zhuo, Shuaihe, 2017. "Enhancing national innovative capacity: The impact of high-tech international trade and inward foreign direct investment," International Business Review, Elsevier, vol. 26(3), pages 502-514.
    4. Philippe Aghion & Nick Bloom & Richard Blundell & Rachel Griffith & Peter Howitt, 2005. "Competition and Innovation: an Inverted-U Relationship," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 120(2), pages 701-728.
    5. Andrei Shleifer & Florencio Lopez-de-Silanes & Rafael La Porta, 2008. "The Economic Consequences of Legal Origins," Journal of Economic Literature, American Economic Association, vol. 46(2), pages 285-332, June.
    6. Robert C. Feenstra & Robert Inklaar & Marcel P. Timmer, 2015. "The Next Generation of the Penn World Table," American Economic Review, American Economic Association, vol. 105(10), pages 3150-3182, October.
    7. Cesar A. Hidalgo & Ricardo Hausmann, 2009. "The Building Blocks of Economic Complexity," Papers 0909.3890, arXiv.org.
    8. Sweet, Cassandra Mehlig & Eterovic Maggio, Dalibor Sacha, 2015. "Do Stronger Intellectual Property Rights Increase Innovation?," World Development, Elsevier, vol. 66(C), pages 665-677.
    9. Enrico Spolaore & Romain Wacziarg, 2009. "The Diffusion of Development," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 124(2), pages 469-529.
    10. Chaudhry, Azam & Ikram, Rabia, 2015. "Does genetic proximity to high growth countries affect a country's own growth?," Economic Modelling, Elsevier, vol. 51(C), pages 444-453.
    11. Edinaldo Tebaldi & Bruce Elmslie, 2013. "Does institutional quality impact innovation? Evidence from cross-country patent grant data," Applied Economics, Taylor & Francis Journals, vol. 45(7), pages 887-900, March.
    12. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 70(1), pages 65-94.
    13. Coe, David T. & Helpman, Elhanan, 1995. "International R&D spillovers," European Economic Review, Elsevier, vol. 39(5), pages 859-887, May.
    14. Ang, James B., 2011. "Financial development, liberalization and technological deepening," European Economic Review, Elsevier, vol. 55(5), pages 688-701, June.
    15. La Porta, Rafael & Lopez-de-Silanes, Florencio & Shleifer, Andrei & Vishny, Robert, 1999. "The Quality of Government," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 15(1), pages 222-279, April.
    16. Romer, Paul, 1994. "New goods, old theory, and the welfare costs of trade restrictions," Journal of Development Economics, Elsevier, vol. 43(1), pages 5-38, February.
    17. Boyan Jovanovic & Rafael Rob, 1989. "The Growth and Diffusion of Knowledge," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 56(4), pages 569-582.
    18. Stulz, Rene M. & Williamson, Rohan, 2003. "Culture, openness, and finance," Journal of Financial Economics, Elsevier, vol. 70(3), pages 313-349, December.
    19. Gino Cattani & Simone Ferriani, 2008. "A Core/Periphery Perspective on Individual Creative Performance: Social Networks and Cinematic Achievements in the Hollywood Film Industry," Organization Science, INFORMS, vol. 19(6), pages 824-844, December.
    20. Zvi Griliches, 1998. "R&D and Productivity: The Econometric Evidence," NBER Books, National Bureau of Economic Research, Inc, number gril98-1, January.
    21. Philippe Aghion & Peter Howitt, 2009. "The Economics of Growth," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262012634, December.
    22. repec:idn:journl:v:21:y:2018:i:2:p:1-8 is not listed on IDEAS
    23. Beck, Thorsten & Demirguc-Kunt, Asli & Levine, Ross, 2003. "Law and finance: why does legal origin matter?," Journal of Comparative Economics, Elsevier, vol. 31(4), pages 653-675, December.
    24. Zvi Griliches, 1998. "Patent Statistics as Economic Indicators: A Survey," NBER Chapters, in: R&D and Productivity: The Econometric Evidence, pages 287-343, National Bureau of Economic Research, Inc.
    25. Hartmann, Dominik & Guevara, Miguel R. & Jara-Figueroa, Cristian & Aristarán, Manuel & Hidalgo, César A., 2017. "Linking Economic Complexity, Institutions, and Income Inequality," World Development, Elsevier, vol. 93(C), pages 75-93.
    26. Chen, Hong & Wang, Xi & Singh, Baljeet, 2018. "Can private domestic investment lead Chinese technological progress?," Economic Modelling, Elsevier, vol. 70(C), pages 186-193.
    27. Peter C. B. Phillips & Donggyu Sul, 2009. "Economic transition and growth," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 24(7), pages 1153-1185.
    28. Alfred Kleinknecht & Kees Van Montfort & Erik Brouwer, 2002. "The Non-Trivial Choice between Innovation Indicators," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 11(2), pages 109-121.
    29. Sweet, Cassandra & Eterovic, Dalibor, 2019. "Do patent rights matter? 40 years of innovation, complexity and productivity," World Development, Elsevier, vol. 115(C), pages 78-93.
    30. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
    31. Francisco J. Buera & Ezra Oberfield, 2020. "The Global Diffusion of Ideas," Econometrica, Econometric Society, vol. 88(1), pages 83-114, January.
    32. Oasis Kodila-Tedika & Simplice A. Asongu, 2016. "Genetic distance and cognitive human capital: a cross-national investigation," Journal of Bioeconomics, Springer, vol. 18(1), pages 33-51, April.
    33. Edwards, Sebastian, 1997. "Trade Policy, Growth, and Income Distribution," American Economic Review, American Economic Association, vol. 87(2), pages 205-210, May.
    34. Javier Mejia, 2018. "Social Networks and Entrepreneurship. Evidence from a Historical Episode of Industrialization," Working Papers 20180020, New York University Abu Dhabi, Department of Social Science, revised Sep 2018.
    35. Furman, Jeffrey L. & Porter, Michael E. & Stern, Scott, 2002. "The determinants of national innovative capacity," Research Policy, Elsevier, vol. 31(6), pages 899-933, August.
    36. Clarke, George, 2001. "How the quality of institutions affects technological deepening in developing countries," Policy Research Working Paper Series 2603, The World Bank.
    37. Fernando E. Alvarez & Francisco J. Buera & Robert E. Lucas, Jr., 2013. "Idea Flows, Economic Growth, and Trade," NBER Working Papers 19667, National Bureau of Economic Research, Inc.
    38. Hu, Mei-Chih & Mathews, John A., 2005. "National innovative capacity in East Asia," Research Policy, Elsevier, vol. 34(9), pages 1322-1349, November.
    39. Guloglu, Bulent & Tekin, R. Baris & Saridogan, Ercan, 2012. "Economic determinants of technological progress in G7 countries: A re-examination," Economics Letters, Elsevier, vol. 116(3), pages 604-608.
    40. Mourad Dakhli & Dirk De Clercq, 2004. "Human capital, social capital, and innovation: a multi-country study," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 16(2), pages 107-128, March.
    41. Furman, Jeffrey L. & Hayes, Richard, 2004. "Catching up or standing still?: National innovative productivity among 'follower' countries, 1978-1999," Research Policy, Elsevier, vol. 33(9), pages 1329-1354, November.
    42. Wang, Cong, 2013. "Can institutions explain cross country differences in innovative activity?," Journal of Macroeconomics, Elsevier, vol. 37(C), pages 128-145.
    43. Beretta, Elena & Fontana, Magda & Guerzoni, Marco & Jordan, Alexander, 2018. "Cultural dissimilarity: Boon or bane for technology diffusion?," Technological Forecasting and Social Change, Elsevier, vol. 133(C), pages 95-103.
    44. Moses Abramovitz, 1956. "Resource and Output Trends in the United States since 1870," NBER Books, National Bureau of Economic Research, Inc, number abra56-1, January.
    45. Vincenzo Bove & Gunes Gokmen, 2018. "Genetic distance, trade, and the diffusion of development," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 33(4), pages 617-623, June.
    46. Kaufmann, Daniel & Kraay, Aart & Mastruzzi, Massimo, 2010. "The worldwide governance indicators : methodology and analytical issues," Policy Research Working Paper Series 5430, The World Bank.
    47. -, 2009. "Economic growth in the Caribbean," Sede Subregional de la CEPAL para el Caribe (Estudios e Investigaciones) 38668, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    48. George R. G. Clarke, 2001. "How institutional quality and economic factors impact technological deepening in developing countries," Journal of International Development, John Wiley & Sons, Ltd., vol. 13(8), pages 1097-1118.
    49. repec:idn:journl:v:22:y:2019:i:1f:p:1-20 is not listed on IDEAS
    50. Moses Abramovitz, 1956. "Resource and Output Trends in the United States since 1870," NBER Chapters, in: Resource and Output Trends in the United States since 1870, pages 1-23, National Bureau of Economic Research, Inc.
    51. Griliches, Zvi, 1998. "R&D and Productivity," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226308869, January.
    52. repec:idn:journl:v:21:y:2019:i:3g:p:1-22 is not listed on IDEAS
    53. Aghion, Philippe & Harris, Christopher & Vickers, John, 1997. "Competition and growth with step-by-step innovation: An example," European Economic Review, Elsevier, vol. 41(3-5), pages 771-782, April.
    54. Ang, James B. & Kumar, Sanjesh, 2014. "Financial development and barriers to the cross-border diffusion of financial innovation," Journal of Banking & Finance, Elsevier, vol. 39(C), pages 43-56.
    55. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gomes, Orlando, 2024. "Optimal planning of technological options and productivity distribution dynamics," Economic Modelling, Elsevier, vol. 130(C).
    2. Negruţiu Cristian & Onea Alexandra & Bădescu Ruxandra, 2020. "Innovation trends in Romanian logistics providers industry," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 14(1), pages 807-818, July.
    3. Naudé, Wim & Bray, Amy & Lee, Celina, 2021. "Crowdsourcing Artificial Intelligence in Africa: Findings from a Machine Learning Contest," IZA Discussion Papers 14545, Institute of Labor Economics (IZA).
    4. Wang, Ling & Ruan, Jianqing, 2023. "Conflict or harmony? The impact of family cultural diversity on children's educational attainment," Economic Modelling, Elsevier, vol. 125(C).
    5. Maurya, Garima & Sahu, Sohini, 2022. "Cross-country variations in economic complexity: The role of individualism," Economic Modelling, Elsevier, vol. 115(C).
    6. Xiong, Jiacai & Yang, Zelin & Wang, Xin & Chan, Kam C., 2023. "Does dialect diversity affect entrepreneurial activities? Evidence from China," Economic Modelling, Elsevier, vol. 128(C).
    7. Todea, Alexandru & Petrescu, Daiana Florina, 2021. "Is stock price informativeness shaped by our genes?," Economic Modelling, Elsevier, vol. 103(C).
    8. He, Siyi & Liu, Jinsong & Ying, Qianwei, 2023. "Externalities of government-oriented support for innovation: Evidence from the national innovative city pilot policy in China," Economic Modelling, Elsevier, vol. 128(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rana P. Maradana & Rudra P. Pradhan & Saurav Dash & Kunal Gaurav & Manju Jayakumar & Debaleena Chatterjee, 2017. "Does innovation promote economic growth? Evidence from European countries," Journal of Innovation and Entrepreneurship, Springer, vol. 6(1), pages 1-23, December.
    2. Janusz Myszczyszyn & Irena Lacka & Sylwia Golab & Beata Bedzik & Blazej Supron, 2021. "A Preliminary Analysis of the Relationship between Economic Growth and Selected Innovativeness Indicators on the Example of Four European Union Countries," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 3), pages 402-418.
    3. Fernandes, Leonardo H.S. & de Araújo, Fernando H.A. & Silva, Igor E.M. & Neto, Jusie S.P., 2021. "Macroeconophysics indicator of economic efficiency," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 573(C).
    4. Thais Andreia Araujo Souza & Marina Silva Cunha, 2018. "Performance of Brazilian total factor productivity from 2004 to 2014: a sectoral and regional analysis," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 7(1), pages 1-18, December.
    5. Sharma, Abhijit & Sousa, Cristina & Woodward, Richard, 2022. "Determinants of innovation outcomes: The role of institutional quality," Technovation, Elsevier, vol. 118(C).
    6. Hugo Erken & Piet Donselaar & Roy Thurik, 2018. "Total factor productivity and the role of entrepreneurship," The Journal of Technology Transfer, Springer, vol. 43(6), pages 1493-1521, December.
    7. Grafström, Jonas & Jaunky, Vishal, 2017. "Convergence of Incentive Capabilities within the European Union," Ratio Working Papers 301, The Ratio Institute.
    8. James B. Ang & Jakob B. Madsen, 2012. "Risk capital, private credit, and innovative production," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 45(4), pages 1608-1639, November.
    9. Antonio Andrés & Simplice Asongu & Voxi Amavilah, 2015. "The Impact of Formal Institutions on Knowledge Economy," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 6(4), pages 1034-1062, December.
    10. Fagerberg, Jan & Srholec, Martin & Verspagen, Bart, 2010. "Innovation and Economic Development," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 2, chapter 0, pages 833-872, Elsevier.
    11. Grafström, Jonas, 2017. "An Econometric Analysis of Divergence of Renewable Energy Invention Efforts in Europe," Ratio Working Papers 295, The Ratio Institute.
    12. Trung V. Vu, 2022. "Does institutional quality foster economic complexity? The fundamental drivers of productive capabilities," Empirical Economics, Springer, vol. 63(3), pages 1571-1604, September.
    13. Attar, M. Aykut, 2016. "Economic Growth and Technological Progress in Turkey: An Analysis of Schumpeterian Mechanisms," MPRA Paper 73255, University Library of Munich, Germany.
    14. Jayasooriya, Sujith, 2020. "Revised Macro-Mincer Model for Human Capital Investment in Economic Growth," MPRA Paper 100747, University Library of Munich, Germany.
    15. Wang, Cong & Lu, Yifan, 2020. "Can economic structural change and transition explain cross-country differences in innovative activity?," Technological Forecasting and Social Change, Elsevier, vol. 159(C).
    16. Pablo Jack & Jeremias Lachman & Andrés López, 2021. "Scientific knowledge production and economic catching-up: an empirical analysis," Scientometrics, Springer;Akadémiai Kiadó, vol. 126(6), pages 4565-4587, June.
    17. Kais Mtar & Walid Belazreg, 2021. "Causal Nexus Between Innovation, Financial Development, and Economic Growth: the Case of OECD Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(1), pages 310-341, March.
    18. Roel van Elk & Bas ter Weel & Karen van der Wiel & Bram Wouterse, 2019. "Estimating the Returns to Public R&D Investments: Evidence from Production Function Models," De Economist, Springer, vol. 167(1), pages 45-87, March.
    19. Alessandro Bellocchi & Giuseppe Travaglini & Beatrice Vitali, 2023. "How capital intensity affects technical progress: An empirical analysis for 17 advanced economies," Metroeconomica, Wiley Blackwell, vol. 74(3), pages 606-631, July.
    20. Juhro, Solikin M. & Narayan, Paresh Kumar & Iyke, Bernard Njindan & Trisnanto, Budi, 2020. "Is there a role for Islamic finance and R&D in endogenous growth models in the case of Indonesia?," Pacific-Basin Finance Journal, Elsevier, vol. 62(C).

    More about this item

    Keywords

    Genetic distance; Innovation; Economic complexity;
    All these keywords.

    JEL classification:

    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecmode:v:82:y:2019:i:c:p:74-86. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/30411 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.