Trade and Transmission of Technology

Wolfgang Keller

No 6113, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We present a model of R&D-driven growth which predicts that technology, in the form of product designs and created through R&D investments, is transmitted to other domestic and foreign sectors by being embodied in differentiated intermediate goods. Empirical results are presented employing data from thirteen manufacturing industries in eight OECD countries over the period of 1970 to 1991. We confirm, first, earlier findings that R&D expenditures are positively related to productivity levels, and estimate an elasticity of TFP with respect to own-industry R&D between 7% and 17%. Second, the receiving industry benefits also from other industries' technology investments, an effect which is at least in part due to trade in embodied technology. We find that the benefit derived from foreign R&D in the same industry is in the order of 50%-95% of the productivity effect of own R&D. Third, for domestic interindustry technology flows, the results strongly suggest that trade in goods is not all that matters for technology transmission. We estimate that domestic, outside-industry R&D is one-fifth to one-half as effective in raising" productivity as own-industry R&D for these industries.

JEL-codes: O3 O4 (search for similar items in EconPapers)
Date: 1997-07
Note: ITI PR
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (55)

Published as Keller, Wolfgang. "Trade And The Transmission Of Technology," Journal of Economic Growth, 2002, v7(1,Mar), 5-24.

Downloads: (external link)
http://www.nber.org/papers/w6113.pdf (application/pdf)

Related works:
Journal Article: Trade and the Transmission of Technology (2002)
Working Paper: Trade and the Transmission of Technology (1997)
Working Paper: Trade and the Transmission of Technology (1997)
Working Paper: Trade and the Transmission of Technology (1996)
Working Paper: Trade and the Transmission of Technology (1996)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:6113

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w6113

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().