Faraway or Nearby? : Domestic and International Spillovers in Patenting and Product Innovation
The diffusion of knowledge plays a central role in endogenous growth theories. Simply put, in these models new knowledge can be generated from preexisting knowledge. In other words, existing knowledge is a pure public good, which can benefit any ec...
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2016
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| Online Access: | http://documents.worldbank.org/curated/en/2016/09/26799445/faraway-or-nearby-domestic-international-spillovers-patenting-product-innovation http://hdl.handle.net/10986/25144 |
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okr-10986-251442021-04-23T14:04:29Z Faraway or Nearby? : Domestic and International Spillovers in Patenting and Product Innovation Bravo-Ortega, Claudio Cusolito, Ana P. Lederman, Daniel endogenous growth growth theory patents production function product innovation spillover effects The diffusion of knowledge plays a central role in endogenous growth theories. Simply put, in these models new knowledge can be generated from preexisting knowledge. In other words, existing knowledge is a pure public good, which can benefit any economic agent anywhere. More generally, endogenous growth theories rely on a broad set of assumptions that have not been tested sufficiently, especially for developing economies. The scope and nature of knowledge spillovers is, however, important for policy, because the presumed positive spillovers can justify government intervention (if the spillovers are localized) or laissez faire (if the spillovers are international). This paper empirically assesses the scope and direction of knowledge spillovers in national patenting and, separately, product innovation by firms. The first set of exercises tests whether the cumulative knowledge specifications of the knowledge production function can explain international patterns of patenting or whether own research and development is necessary to produce patents. The second set of exercises analyzes whether firm product-quality upgrading and the introduction of new products depend on product innovation within industries, within or across countries. The evidence supports the view that existing stocks of knowledge, domestic and foreign, enhance national innovation and entrepreneurship in the form of product innovation. More specifically, the evidence suggests that within-country and international knowledge spillovers are positive, but international spillovers can be negative for firms that are far from innovative firms in terms of productivity. The results depend on the concept of “distance” between countries and firms. 2016-10-13T19:12:01Z 2016-10-13T19:12:01Z 2016-09 Working Paper http://documents.worldbank.org/curated/en/2016/09/26799445/faraway-or-nearby-domestic-international-spillovers-patenting-product-innovation http://hdl.handle.net/10986/25144 English en_US Policy Research Working Paper;No. 7828 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper |
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Digital Repository |
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Foreign Institution |
| institution |
Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
| language |
English en_US |
| topic |
endogenous growth growth theory patents production function product innovation spillover effects |
| spellingShingle |
endogenous growth growth theory patents production function product innovation spillover effects Bravo-Ortega, Claudio Cusolito, Ana P. Lederman, Daniel Faraway or Nearby? : Domestic and International Spillovers in Patenting and Product Innovation |
| relation |
Policy Research Working Paper;No. 7828 |
| description |
The diffusion of knowledge plays a
central role in endogenous growth theories. Simply put, in
these models new knowledge can be generated from preexisting
knowledge. In other words, existing knowledge is a pure
public good, which can benefit any economic agent anywhere.
More generally, endogenous growth theories rely on a broad
set of assumptions that have not been tested sufficiently,
especially for developing economies. The scope and nature of
knowledge spillovers is, however, important for policy,
because the presumed positive spillovers can justify
government intervention (if the spillovers are localized) or
laissez faire (if the spillovers are international). This
paper empirically assesses the scope and direction of
knowledge spillovers in national patenting and, separately,
product innovation by firms. The first set of exercises
tests whether the cumulative knowledge specifications of the
knowledge production function can explain international
patterns of patenting or whether own research and
development is necessary to produce patents. The second set
of exercises analyzes whether firm product-quality upgrading
and the introduction of new products depend on product
innovation within industries, within or across countries.
The evidence supports the view that existing stocks of
knowledge, domestic and foreign, enhance national innovation
and entrepreneurship in the form of product innovation. More
specifically, the evidence suggests that within-country and
international knowledge spillovers are positive, but
international spillovers can be negative for firms that are
far from innovative firms in terms of productivity. The
results depend on the concept of “distance” between
countries and firms. |
| format |
Working Paper |
| author |
Bravo-Ortega, Claudio Cusolito, Ana P. Lederman, Daniel |
| author_facet |
Bravo-Ortega, Claudio Cusolito, Ana P. Lederman, Daniel |
| author_sort |
Bravo-Ortega, Claudio |
| title |
Faraway or Nearby? : Domestic and International Spillovers in Patenting and Product Innovation |
| title_short |
Faraway or Nearby? : Domestic and International Spillovers in Patenting and Product Innovation |
| title_full |
Faraway or Nearby? : Domestic and International Spillovers in Patenting and Product Innovation |
| title_fullStr |
Faraway or Nearby? : Domestic and International Spillovers in Patenting and Product Innovation |
| title_full_unstemmed |
Faraway or Nearby? : Domestic and International Spillovers in Patenting and Product Innovation |
| title_sort |
faraway or nearby? : domestic and international spillovers in patenting and product innovation |
| publisher |
World Bank, Washington, DC |
| publishDate |
2016 |
| url |
http://documents.worldbank.org/curated/en/2016/09/26799445/faraway-or-nearby-domestic-international-spillovers-patenting-product-innovation http://hdl.handle.net/10986/25144 |
| _version_ |
1764458661994823680 |