On"indirect"trade-related research and development spillovers

Lumenga-Neso, Olivier, Marcelo Olarreaga () and Maurice Schiff ()

No 2580, Policy Research Working Paper Series from The World Bank

Abstract: Influential literature argues that trade promotes knowledge flows and technology transmission between trading partners. This literature focuses on'direct'research and development (R&D) spillovers which are related to the levels of R&D produced by the trading partners. In this paper the authors argue that'indirect'trade-related R&D spillovers also take place between countries, even if they do not trade with each other. These'indirect'spillovers are associated with available rather than with produced levels of R&D. The empirical results suggest that these'indirect'trade-related spillovers are at least as important as the'direct'ones, and strengthen the view that trade does matter for the international transmission of R&D. The empirical results also suggest that, due to the existence of these'indirect'effects, bilateral trade patterns are relatively less important as determinants of the level of foreign R&D spillovers acquired through trade.

Keywords: Economic Theory&Research; Scientific Research&Science Parks; Agricultural Knowledge&Information Systems; Environmental Economics&Policies; Health Economics&Finance; Research and Development; Education and Digital Divide; Agricultural Knowledge&Information Systems; Scientific Research&Science Parks; Science Education (search for similar items in EconPapers)
Date: 2001-04-12
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