Revealing the International Spillovers Structure of Innovation for Asian Region

Ku-Hsieh Chen and Hao-Yen Yang

Global Economic Review, 2011, vol. 40, issue 1, 83-121

Abstract: The objective of this study aims to provide an overall revelation of the magnitude, frame, flow, and output creation effect of cross-national and cross-sectoral spillover of innovation within Asia. Methodologically, Dietzenbacher's framework for evaluating the innovative spillover effect is modified and extended to a cross-national and cross-sectoral context for accommodating this purpose, accompanied by the utilization of the Asian International I/O (AIO) table for the year 2000. Several results are thus achieved: (1) For the spillover structure, it is understood that the inter-sectoral dependence and vertical specialization in production serves as the nexus for the skeleton of rent spillover. (2) The extent of process innovative spillover is at a level of approximately 90%, while the extent of product innovative spillover is roughly in the 40-50% range. (3) On average, a 1% process innovation would create the total Asian output by a 0.0025-0.1387% margin, and a 1% product innovation would contribute 0.0010-0.0575% of the total output. (4) The United States, Japan, and China rank as the top three countries equipped with the capability of creating the most plentiful innovative spillover effect on the Asian region overall. (5) The United States and Japan still occupy the position of leading flying geese to date, while China might emerge as an industrial innovative leading flying goose in the near future. (6) Under the prerequisite of regional development, this study has tabulated the sector rankings according to the strength of overall spillover effect by country as a reference for tactically reallocating industrial and innovative policy from a regional development perspective.

Keywords: Innovation; spillover effect; IO table (search for similar items in EconPapers)
Date: 2011
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DOI: 10.1080/1226508X.2011.559330

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