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International technology spillovers from trade: the importance of the technological gap

  • Jorge Crespo

    (Universidad Complutense de Madrid)

  • Carmela Martín

    (Universidad Complutense de Madrid)

  • Francisco J. Velázquez

    (Universidad Complutense de Madrid)

This paper analyses two significant and to date open issues regarding the role of trade as a channel for international technology spillovers. The first refers to its relative impact on growth in comparison to that of own R&D spending. The second has to do with the importance of the technological gap to take advantage of foreign technology. For this purpose we estimate a version of the growth model proposed by Benhabib and Spiegel (1994), which includes some modifications to better capture the technology diffusion process. Our results first suggest that domestic R&D and human capital stocks are critical for foreign technology adoption. Secondly, they indicate that richer countries are more successful in taking advantage of international technology spillovers. (Copyright: Fundación SEPI)

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Article provided by Fundación SEPI in its journal Investigaciones Económicas.

Volume (Year): 28 (2004)
Issue (Month): 3 (September)
Pages: 515-533

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Handle: RePEc:iec:inveco:v:28:y:2004:i:3:p:515-533
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