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On "indirect" trade-related research and development spillovers, Volume 1
Author:Lumenga-Neso, Olivier; Olarreaga, Marcelo; Schiff, Maurice; Country:World;
Date Stored:2004/01/29Document Date:2001/04/12
Document Type:Policy Research Working PaperSubTopics:Economic Theory & Research; Education and Digital Divide; Scientific Research & Science Parks; Health Economics & Finance; Science Education; Research and Development; Agricultural Knowledge and Information Systems; Environmental Economics & Policies
Language:EnglishRegion:The World Region
Report Number:WPS2580Collection Title:Policy, Research working paper ; WPS 2580
Volume No:1  

Summary: Influential literature argues that trade promotes knowledge flows and technology transmission between trading partners. This literature focuses on 'direct' research and development (R&D) spillovers which are related to the levels of R&D produced by the trading partners. In this paper the authors argue that 'indirect' trade-related R&D spillovers also take place between countries, even if they do not trade with each other. These 'indirect' spillovers are associated with available rather than with produced levels of R&D. The empirical results suggest that these 'indirect' trade-related spillovers are at least as important as the 'direct' ones, and strengthen the view that trade does matter for the international transmission of R&D. The empirical results also suggest that, due to the existence of these 'indirect' effects, bilateral trade patterns are relatively less important as determinants of the level of foreign R&D spillovers acquired through trade.

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