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Global Integration & Technology Transfer

The importance of international technology diffusion (ITD) for economic development can hardly be overstated. Both the acquisition of technology and its diffusion foster productivity growth. As invention and creation processes remain overwhelmingly the province of industrialized countries, most developing countries rely largely on imported technologies as sources of new productive knowledge.

The contributions in this volume advance our understanding of the relative importance of technology diffusion through trade and foreign direct investment in a range of developing and transition economies. The studies address the effect of the two channels on productivity growth both at the firm and economy-wide level. They discuss policy intervention used by developing countries to stimulate ITD, ranging from economy-wide educational programs to funding for the creation and acquisition of technology, tax incentives, specific types of intellectual property protection, tariffs on trade, differential taxation, export promotion schemes, and so forth. They also provide guidance on the likely impact of policies towards trade and inward investment on productivity performance in different “types” of developing countries.

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