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Ideas and Innovation in East Asia

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  • Milan Brahmbhatt
  • Albert Hu

Abstract

The generation, diffusion, absorption, and application of new technology, knowledge, or ideas are crucial drivers of development. The authors examine the exceptionally fast growth in domestic innovation efforts in Korea, Taiwan (China), Singapore, and China, drawing on information about R&D as well as patent and patent citations data. They also use the World Bank Investment Climate Surveys to investigate sources of technological innovation in the other middle- and low-income East Asian economies. They then evaluate the role of three main channels for knowledge flows to East Asia--international trade, acquisition of disembodied knowledge, and foreign direct investment. Results from estimating an international knowledge diffusion model using patent citations data show that, while East Asian innovations continue to draw heavily on knowledge flows from the US and Japan, citations to the same or to other East Asian economies are quickly rising, indicating the emergence of national and regional knowledge stocks as a foundation for innovation. Copyright 2010, Oxford University Press.

Suggested Citation

  • Milan Brahmbhatt & Albert Hu, 2010. "Ideas and Innovation in East Asia," The World Bank Research Observer, World Bank, vol. 25(2), pages 177-207, August.
    • Handle: RePEc:oup:wbrobs:v:25:y:2010:i:2:p:177-207
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    File URL: http://hdl.handle.net/10.1093/wbro/lkp017
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    Cited by:

    1. Pierre-Richard Agénor, 2017. "Caught In The Middle? The Economics Of Middle-Income Traps," Journal of Economic Surveys, Wiley Blackwell, vol. 31(3), pages 771-791, July.
    2. Pierre-Richard AGENOR, 2016. "Caught in the Middle? The Economics of Middle-Income Traps," Working Papers P142, FERDI.
    3. Michael Olabisi, 2017. "The Impact Of Exporting And Foreign Direct Investment On Product Innovation: Evidence From Chinese Manufacturers," Contemporary Economic Policy, Western Economic Association International, vol. 35(4), pages 735-750, October.

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