Innovation and Technology Transfer across Countries


Neil Foster-McGregor

wiiw Research Report No. 380, August 2012
117 pages including 20 Tables and 37 Figures

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Innovation is considered to be an important determinant of performance at the firm, industry and country level. This view is supported by empirical evidence showing the importance of innovative activities on firm and industry performance and country growth rates. The majority of the world’s R&D is concentrated in a handful of countries however, meaning that domestic innovation is of little importance for most countries. Such countries can benefit from innovation conducted elsewhere however, if knowledge and technology is diffused across borders. In this paper we survey existing literature on innovation and technology diffusion and discuss descriptive statistics on the extent of innovation and technology diffusion across countries to provide insights into the likely developments in innovation and diffusion.


Keywords: Innovation, technology diffusion, R&D internationalization

JEL classification: O3

Countries covered: non specific

Research Areas: International Trade, Competitiveness and FDI