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International technology diffusion and economic growth: Explaining the spillover benefits to developing countries

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  • Seck, Abdoulaye

Abstract

Technology spillovers offer great opportunities for economic growth to developing countries that do little, if any, R&D activity. This paper explores the extent to which these countries benefit from foreign technology, the diffusion mechanisms involved, and the factors that shape their absorption capabilities. Results based on a non-stationary panel of 55 developing countries indicate that the benefits are quite substantial: a ten-percent increase in foreign R&D stock is translated into more than a two-percent increase in aggregate productivity. Of the diffusion channels considered, imports appear to be more conducive to R&D spillover. In addition, developing countries that enjoy larger benefits tend to exhibit larger stock of human capital, more openness to trade and foreign activities, and stronger institutions. These North–South R&D spillovers, although larger than previously suggested, appear less strong than North–North spillovers, adding to the general literature on economic divergence between developed and developing countries.

Suggested Citation

  • Seck, Abdoulaye, 2012. "International technology diffusion and economic growth: Explaining the spillover benefits to developing countries," Structural Change and Economic Dynamics, Elsevier, vol. 23(4), pages 437-451.
  • Handle: RePEc:eee:streco:v:23:y:2012:i:4:p:437-451
    DOI: 10.1016/j.strueco.2011.01.003
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    Cited by:

    1. Maite Alguacil & Andrea Éltetó & Valeriano Martínez–San Román, 2015. "International R&D spillovers in Central and Eastern Europe. The role of capital imports and local conditions," Working Papers 2015/12, Economics Department, Universitat Jaume I, Castellón (Spain).
    2. repec:afe:journl:v:19:y:2017:i:1:p:1-26 is not listed on IDEAS
    3. repec:spr:jknowl:v:8:y:2017:i:1:d:10.1007_s13132-015-0270-7 is not listed on IDEAS
    4. Kazuo Ogawa & Elmer Sterken & Ichiro Tokutsu, 2016. "International R&D Spillovers and Marginal Social Returns on R&D," CESifo Working Paper Series 6255, CESifo Group Munich.
    5. repec:eee:respol:v:46:y:2017:i:7:p:1299-1311 is not listed on IDEAS

    More about this item

    Keywords

    R&D spillover; TFP; Developing countries; Non-stationary panel;

    JEL classification:

    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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