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Catching up to the Technology Frontier: The Dichotomy Between Innovation and Imitation

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  • Jakob Madsen
  • Rabiul Islam
  • James Ang

Abstract

This research examines whether technology transfer, research intensity, educational attainment and the ability to absorb foreign technology help explain cross-country differences in productivity growth. Our data comprise a panel of 55 countries including 23 OECD and 32 developing economies over the period 1970-2004. The results show that TFP growth in both OECD and developing countries is positively affected by research intensity, distance to the frontier, research intensity-based absorptive capacity and educational attainment-based absorptive capacity. However, they reveal large differences between developed and developing countries.

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  • Jakob Madsen & Rabiul Islam & James Ang, 2009. "Catching up to the Technology Frontier: The Dichotomy Between Innovation and Imitation," CAMA Working Papers 2009-26, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    • Handle: RePEc:een:camaaa:2009-26
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    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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