 Brain Drain or Brain Gain? Technology Diffusion and Learning On-the-jobCEP Discussion Papers from Centre for Economic Performance, LSE Abstract: This paper develops a theory of technology transfer when technology is embodied in human capital and learning requires on-the-job communication between managers and workers. Patterns of knowledge diffusion depend on where high knowledge managers work and how much time they allocate to training workers. Managers appropriate the surplus training creates and in the open economy managers face a cross-country trade-off between labor costs and the value of knowledge transfer. Complementarity between country-wide efficiency and managerial knowledge makes learning more valuable in the North meaning that high knowledge managers choose to work in the North and globalization precipitates a brain drain of high knowledge Southern agents to the North. The brain drain reduces learning opportunities in the South and exacerbates cross-country knowledge differences. Keywords: Technology diffusion; managerial knowledge; learning on-the-job; FDI; brain drain (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:cep:cepdps:dp1168 Access Statistics for this paper More papers in CEP Discussion Papers from Centre for Economic Performance, LSE |
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