Working Paper: CEPR ID: DP3133
Authors: Wolfgang Keller
Abstract: I discuss the concept and empirical importance of international technology diffusion from the point of view of recent work on endogenous technological change. In this literature, technology is viewed as technological knowledge. I first review major concepts and discuss the relation of international technology diffusion with other mechanisms of economic growth in open economies. The main section of the Paper provides a review of recent empirical results on (i) basic results in international technology diffusion; (ii) the importance of specific channels of diffusion, in particular trade and foreign direct investment; (iii) the spatial distribution of technological knowledge and (iv) other issues.
Keywords: convergence; disembodied technology; divergence; embodied technology; foreign direct investment; knowledge; globalization; learning externalities; spatial productivity effects; spillovers
JEL Codes: F00; F10; O30
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| international technology diffusion (O33) | per capita income (D31) |
| foreign R&D (O36) | domestic productivity (O49) |
| direct learning about foreign technological knowledge (O36) | productivity growth (O49) |
| use of advanced intermediate products developed abroad (F29) | productivity growth (O49) |
| active spillovers (F69) | productivity growth (O49) |
| passive spillovers (O36) | productivity growth (O49) |
| foreign sources for productivity growth (O49) | productivity growth in less developed countries (O49) |