On " indirect " trade-related research and development spillovers, Vol. 1 of 1

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On "indirect" trade-related research and development spillovers, Volume 1 of 1

Author:	Lumenga-Neso, Olivier; Olarreaga, Marcelo; Schiff, Maurice;	Collection Title:	Policy, Research working paper ; WPS 2580
Country:	World;	Date Stored:	2004/01/29
Document Date:	2001/04/12	Document Type:	Policy Research Working Paper
Language:	English	Region:	The World Region
Report Number:	WPS2580	SubTopics:	Environmental Economics & Policies; Scientific Research & Science Parks; Education and Digital Divide; Economic Theory & Research; Research and Development; Science Education; Health Economics & Finance; Agricultural Knowledge and Information Systems
Volume No:	1 of 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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