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Knowlegde Spillovers, absorptive capacity and growth: An industry-level Analysis for OECD countries

Listed author(s):
  • Ioannis Bournakis
  • Dimitris Christopoulos
  • Sushanta Mallick

Spillovers have usually been undertaken at the country level, the spillover effects can be more definitive only if the analysis is conducted at the industry-level. This paper therefore attempts to identify spillovers by disentangling technological innovations into intra- and inter-national knowledge innovations at industry level in driving per capita output growth. Our main findings are first, that there is evidence for a robust positive relationship between R&D, human capital and output growth across these countries at industry-level. Second, the potential of international spillover gains is greater in countries with higher human capital and in industries whose pattern of production is more R&D oriented, import intensive, and dependent on vertical FDI. Finally, significant heterogeneity is found between high and low-tech industries with high-tech group displaying greater knowledge spillovers, suggesting that low-tech industries need to be more innovative in order to absorb the technological advancements of domestic and international rivals.

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Paper provided by FIW in its series FIW Working Paper series with number 147.

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Length: 43
Date of creation: Mar 2015
Handle: RePEc:wsr:wpaper:y:2015:i:147
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