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Technology Spillovers and Innovation - the importance of domestic and foreign sources

  • Lööf, Hans

    ()

    (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)

This paper asks whether there is evidence of higher innovation output from firms where there is more foreign activity in terms of foreign direct investments (FDI), trade and collaboration on innovation, or if proximity between innovators is more important. With a sample of about two-thirds of Swedish firms with at least 10 employees and by accounting for selectivity and simultaneity biases, sector specific effects and firm specific effects, we find robust evidence for import spill over. There is also support for international knowledge transfer to the local firm from foreign units indicating the importance of both inward and outward FDI. We only find some weak find association between proximity to local partners and innovation. The most important aspect of the local milieu on innovation is skilled labour.

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Paper provided by Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies in its series Working Paper Series in Economics and Institutions of Innovation with number 83.

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Length: 44 pages
Date of creation: 28 Feb 2007
Date of revision: 29 Jun 2007
Handle: RePEc:hhs:cesisp:0083
Note: The title has been changes
Contact details of provider: Postal: CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, SE-100 44 Stockholm, Sweden
Phone: +46 8 790 95 63
Web page: http://www.infra.kth.se/cesis/

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