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Creating competition?: Globalisation and the emergence of new technology producers

  • Athreye, Suma
  • Cantwell, John

This paper studies the emergence of new countries as contributors to technology generation in the world economy and assesses the relationship between this and globalisation (through trade, inward FDI and international migration). It considers two measures of technology generation, viz. a country's share of licensing revenues and of foreign origin patenting in the US, thus covering different phases and aspects of technological catch-up across countries. The paper uses a novel index to track the influence of new countries as technology generators in these datasets and uses time series techniques to understand the causal relationship between globalisation and the emergence of new technology producers. Our findings suggest a role for increasing international direct investment as a factor causing the emergence of new countries with the higher level competitiveness associated with patenting, but not in the recent surge of new countries with the basic capabilities needed to become licensors in the world economy. However, an increase in the international spread of the subsidiary sources of the patenting activity of multinationals appears to follow periods when the world economy becomes less open to trade.

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Article provided by Elsevier in its journal Research Policy.

Volume (Year): 36 (2007)
Issue (Month): 2 (March)
Pages: 209-226

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Handle: RePEc:eee:respol:v:36:y:2007:i:2:p:209-226
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  1. Dieter Ernst, 2000. "Global Production Networks and the Changing Geography of Innovation Systems: Implications for Developing Countries," Economics Study Area Working Papers 09, East-West Center, Economics Study Area.
  2. Fagerberg, Jan, 1994. "Technology and International Differences in Growth Rates," Journal of Economic Literature, American Economic Association, vol. 32(3), pages 1147-75, September.
  3. Subodh Kumar & R. Robert Russell, 2002. "Technological Change, Technological Catch-up, and Capital Deepening: Relative Contributions to Growth and Convergence," American Economic Review, American Economic Association, vol. 92(3), pages 527-548, June.
  4. Paul Romer, 1989. "Endogenous Technological Change," NBER Working Papers 3210, National Bureau of Economic Research, Inc.
  5. Cantwell, John, 1995. "The Globalisation of Technology: What Remains of the Product Cycle Model?," Cambridge Journal of Economics, Oxford University Press, vol. 19(1), pages 155-74, February.
  6. Lipsey, Robert E & Weiss, Merle Yahr, 1981. "Foreign Production and Exports in Manufacturing Industries," The Review of Economics and Statistics, MIT Press, vol. 63(4), pages 488-94, November.
  7. Ernst, Dieter & Kim, Linsu, 2002. "Global production networks, knowledge diffusion, and local capability formation," Research Policy, Elsevier, vol. 31(8-9), pages 1417-1429, December.
  8. Daniele Archibugi & Alberto Coco, 2001. "The Technological Performance Of Europe In A Global Setting," Industry and Innovation, Taylor & Francis Journals, vol. 8(3), pages 245-266.
  9. Lipsey, Robert E & Weiss, Merle Yahr, 1984. "Foreign Production and Exports of Individual Firms," The Review of Economics and Statistics, MIT Press, vol. 66(2), pages 304-08, May.
  10. Griliches, Zvi, 1990. "Patent Statistics as Economic Indicators: A Survey," Journal of Economic Literature, American Economic Association, vol. 28(4), pages 1661-1707, December.
  11. Arora, Ashish & Gambardella, Alfonso (ed.), 2005. "From Underdogs to Tigers: The Rise and Growth of the Software Industry in Brazil, China, India, Ireland, and Israel," OUP Catalogue, Oxford University Press, number 9780199275601, July.
  12. Breschi, Stefano & Lissoni, Francesco, 2000. "Knowledge Spillovers And Local Innovation Systems: A Critical Survey," ERSA conference papers ersa00p362, European Regional Science Association.
  13. Suma Athreye, 1997. "On Markets in Knowledge," Journal of Management and Governance, Springer, vol. 1(2), pages 231-253, June.
  14. repec:fth:harver:1473 is not listed on IDEAS
  15. Rajneesh Narula & John Dunning, 2000. "Industrial Development, Globalization and Multinational Enterprises: New Realities for Developing Countries," Oxford Development Studies, Taylor & Francis Journals, vol. 28(2), pages 141-167.
  16. Cooke, Philip, 2001. "Regional Innovation Systems, Clusters, and the Knowledge Economy," Industrial and Corporate Change, Oxford University Press, vol. 10(4), pages 945-74, December.
  17. Pearce, Robert, 1999. "The evolution of technology in multinational enterprises: the role of creative subsidiaries," International Business Review, Elsevier, vol. 8(2), pages 125-148, April.
  18. Cantwell, John & Vertova, Giovanna, 2004. "Historical evolution of technological diversification," Research Policy, Elsevier, vol. 33(3), pages 511-529, April.
  19. Cristiano Antonelli, 1998. "Localized technological change, new information technology and the knowledge-based economy: The European evidence," Journal of Evolutionary Economics, Springer, vol. 8(2), pages 177-198.
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