International knowledge spillovers. (15th December 2021)

• Record Type: Journal Article
• Authors: Eugster, Johannes L; Ho, Giang; Jaumotte, Florence; Piazza, Roberto
• Is Part Of: Journal of economic geography. Volume 22:Number 6(2022)
• Page Start: 1191
• Page End: 1224
• Publication Date: 2021-12-15
• Subjects: Knowledge spillovers -- knowledge barriers -- international competition; F1 -- F2 -- O3 -- O4; Economic geography -- Periodicals; 330.9
• DOI: 10.1093/jeg/lbab040
• Languages: English
• ISSNs: 1468-2702

Abstract

Abstract: How important is foreign knowledge for domestic innovation outcomes? How is this relation shaped by globalization and the attendant intensification of international competition? Our empirical approach extends the previous literature by analyzing a large panel comprising industries in both advanced and emerging economies over the past two decades. We find that barriers to the domestic diffusion of foreign knowledge have fallen significantly for emerging economies. For all countries, and especially for emerging economies, inflows of foreign knowledge have a growing and quantitatively important impact on domestic innovation. Controlling for the amount of domestic R&D, we find evidence that increases in international competitive pressure at the industry level had a positive effect on domestic innovation outcomes.