TRADE, THE CHANNEL OF INNOVATION: A NETWORK EXPLANATION ON TECHNOLOGY SPILLOVERS

Authors

  • Hye-Ryoung Jung Duke University & Ministry of Foreign Affairs and Trade of Rep. Korea 1508 ASEAN Cooperation Division of MOFAT, Seoul, South Korea

Abstract

This paper attempts to propose a more sophisticated model that addresses the structural trade mechanisms for technology spillovers across nations. This paper connects two separate models by applying network estimations representing knowledge diffusion to the Coe and Helpman model of international R&D spillovers. The results of panel analysis from 1971 to 2000 on 24 OECD countries validate that the network estimator of effective size performs much better than Coe and Helpman’s estimation - the bilateral-import-share-weighted for foreign R&D capital. These findings offer policy implications that help how to decide trade partners and organize them for effective absorption or creation of knowledge. Lastly, as the supplementary analysis, the model is applied to 24 non OECD countries. Due to the data limitation, it failed to compare the validity of explanatory estimators, but the result shows that international technology spillovers is the crucial to increase productivity, even more than domestic R&D expenditure in developing countries.

Downloads

Published

2014-04-29

How to Cite

Jung, H.-R. (2014). TRADE, THE CHANNEL OF INNOVATION: A NETWORK EXPLANATION ON TECHNOLOGY SPILLOVERS. Journal of Technology Management and Technopreneurship (JTMT), 1(1). Retrieved from https://jtmt.utem.edu.my/jtmt/article/view/41

Issue

Vol. 1 No. 1 (2013)

Section

Journal of Technology Management and Technopreneurship

License

Authors who publish with this journal agree to the following terms:

  1. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-By 4.0 (CC BY 4.0)  that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
  2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
  3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).