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Greening global value chains : innovation and the international diffusion of technologies and knowledge

  • Glachant, Matthieu
  • Dussaux, Damien
  • Meniere, Yann
  • Dechezlepretre, Antoine

Using novel data on patents, trade of equipment goods, and foreign direct investments and insights from the economic literature, the paper seeks to lay out the state of knowledge on the role of innovation and the diffusion of technologies in the greening of global value chains as well as some of the main policy issues. A special emphasis is put on developing countries -- distinguishing emerging economies and least-developed countries -- and on climate-mitigation technologies. Emerging economies are already reasonably well integrated in the global economy. As a consequence, technologies flow in through the imports of capital goods and local investments by multinational enterprises owning technologies. Pushing further technology transfer requires strengthening intellectual property rights, lowering barriers to trade and investments and improving technological absorptive capacities. In contrast, their role in innovation is limited. Standard tools of innovation policy - public research and development, public support to private research and development, better access to finance - should develop. But studies also suggest that governments should introduce more stringent environmental policies with proper enforcement at home to go beyond the adoption of foreign technologies. The situation of least-developed countries is very different: they do not import green technologies and low barriers to trade and foreign direct investment or strict intellectual property rights are unlikely to trigger technology transfer. In these countries, the focus should be on building technological capacities.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 6467.

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Date of creation: 01 May 2013
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Handle: RePEc:wbk:wbrwps:6467
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  1. Brunnermeier, Smita B. & Cohen, Mark A., 2003. "Determinants of environmental innovation in US manufacturing industries," Journal of Environmental Economics and Management, Elsevier, vol. 45(2), pages 278-293, March.
  2. Richard G. Newell & Adam B. Jaffe & Robert N. Stavins, 1998. "The Induced Innovation Hypothesis and Energy-Saving Technological Change," NBER Working Papers 6437, National Bureau of Economic Research, Inc.
  3. de la Tour, Arnaud & Glachant, Matthieu & Ménière, Yann, 2011. "Innovation and international technology transfer: The case of the Chinese photovoltaic industry," Energy Policy, Elsevier, vol. 39(2), pages 761-770, February.
  4. Smith, Pamela J., 2001. "How do foreign patent rights affect U.S. exports, affiliate sales, and licenses?," Journal of International Economics, Elsevier, vol. 55(2), pages 411-439, December.
  5. Antoine Dechezlepretre & Matthieu Glachant & Ivan Hascic & Nick Johnstone & Yann Meniere, 2011. "Invention and transfer of climate change-mitigation technologies: a global analysis," LSE Research Online Documents on Economics 37667, London School of Economics and Political Science, LSE Library.
  6. Matthieu Glachant & Yann Ménière, 2011. "Project Mechanisms and Technology Diffusion in Climate Policy," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 49(3), pages 405-423, July.
  7. Dekker, Thijs & Vollebergh, Herman R.J. & de Vries, Frans P. & Withagen, Cees A., 2012. "Inciting protocols," Journal of Environmental Economics and Management, Elsevier, vol. 64(1), pages 45-67.
  8. Wolfgang Keller, 2004. "International Technology Diffusion," Journal of Economic Literature, American Economic Association, vol. 42(3), pages 752-782, September.
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  10. Eaton, J. & Kortum, S., 1995. "Trade in Ideas: Patenting and Productivity onn the OECD," Papers 34, Boston University - Department of Economics.
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  13. Jacob Funk Kirkegaard & Thilo Hanemann & Lutz Weischer, 2009. "It Should Be a Breeze: Harnessing the Potential of Open Trade and Investment Flows in the Wind Energy Industry," Working Paper Series WP09-14, Peterson Institute for International Economics.
  14. Antoine Dechezlepr�tre & Matthieu Glachant & Ivan Hascic & Nick Johnstone & Yann M�ni�re, 2010. "Invention and transfer of climate change mitigation technologies on a global scale: a study drawing on patent data," GRI Working Papers 17, Grantham Research Institute on Climate Change and the Environment.
  15. Mancusi, Maria Luisa, 2008. "International spillovers and absorptive capacity: A cross-country cross-sector analysis based on patents and citations," Journal of International Economics, Elsevier, vol. 76(2), pages 155-165, December.
  16. Lanjouw, Jean Olson & Mody, Ashoka, 1996. "Innovation and the international diffusion of environmentally responsive technology," Research Policy, Elsevier, vol. 25(4), pages 549-571, June.
  17. David Popp, 2002. "Induced Innovation and Energy Prices," American Economic Review, American Economic Association, vol. 92(1), pages 160-180, March.
  18. Parello, Carmelo Pierpaolo, 2008. "A north-south model of intellectual property rights protection and skill accumulation," Journal of Development Economics, Elsevier, vol. 85(1-2), pages 253-281, February.
  19. Verdolini, Elena & Galeotti, Marzio, 2011. "At home and abroad: An empirical analysis of innovation and diffusion in energy technologies," Journal of Environmental Economics and Management, Elsevier, vol. 61(2), pages 119-134, March.
  20. Ockwell, David G. & Watson, Jim & MacKerron, Gordon & Pal, Prosanto & Yamin, Farhana, 2008. "Key policy considerations for facilitating low carbon technology transfer to developing countries," Energy Policy, Elsevier, vol. 36(11), pages 4104-4115, November.
  21. Peters, Michael & Schneider, Malte & Griesshaber, Tobias & Hoffmann, Volker H., 2012. "The impact of technology-push and demand-pull policies on technical change – Does the locus of policies matter?," Research Policy, Elsevier, vol. 41(8), pages 1296-1308.
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