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International technology transfer between China and the rest of the world

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Abstract

We study the patterns and drivers of international technology transfer to and from China and the rest of the world. Our analysis makes use of patent-based measures of cross-border ownership of inventions. To quantify these technology flows, we a patent database providing a worldwide coverage of patents. We use a gravity model to explain the drivers of the international technology transfer. Although China exhibits a large deficit in international technology transfer, the flow of technology from abroad to China intensifies as its absorptive capacity grows. Excluding Taiwan, the US and China relationship dominates the technology transfer between China and the rest of the world. This is even more emphasised by the relatively weak position of Japan and other Asian countries in the process of technology exchange with China. This is result is not affected by the fact that the US acts mainly as an acquirer of Chinese technology.

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  • Giuditta De Prato & Daniel Nepelski, 2012. "International technology transfer between China and the rest of the world," JRC Working Papers JRC79397, Joint Research Centre (Seville site), revised Nov 2012.
  • Handle: RePEc:ipt:iptwpa:jrc79397
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    File URL: http://publications.jrc.ec.europa.eu/repository/handle/JRC79397
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    Keywords

    international technology transfer; cross-border ownership of inventions; patent analysis; China;

    JEL classification:

    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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