International Trade, Foreign Direct Investment, and Technology Spillovers

No 15442, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper examines how international flows of technological knowledge affect economic performance across industries and firms in different countries. Motivated by the large share of the world's technology investments made by firms that are active across borders, we focus on international trade and multinational enterprise activity as conduits for technological externalities, or spillovers. In addition to reviewing the recent empirical research on technology spillovers, the discussion is guided by a new model of foreign direct investment, trade, and endogenous technology transfer. We find evidence for technology spillovers through international trade and the activity of multinational enterprises. The analysis also highlights challenges for future empirical research, as well as the need for additional data on technology and innovation.

JEL-codes: F1 F2 L2 O3 O4 (search for similar items in EconPapers)
Date: 2009-10
New Economics Papers: this item is included in nep-cse, nep-dev, nep-int and nep-sbm
Note: EFG IO ITI PR
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Citations: View citations in EconPapers (75)

Published as International Trade, Foreign Direct Investment, and Technology Spillovers, Chapter 19 in B. Hall, N. Rosenberg (eds.), Handbook of the Economics of Innovation, Elsevier North-Holland, 2010

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Chapter: International Trade, Foreign Direct Investment, and Technology Spillovers (2010)
Working Paper: International Trade, Foreign Direct Investment, and Technology Spillovers (2009)
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