Geographic Localization of International Technology Diffusion
American Economic Review
vol. 92,
no. 1, March 2002
(pp. 120-142)
Abstract
Income convergence across countries turns on whether technological knowledge spillovers are global or local. I estimate the amount of spillovers from R&D expenditures on a geographic basis, using a new data set which encompasses most of the world's innovative activity between 1970 and 1995. I find that technology is to a substantial degree local, not global, as the benefits from spillovers are declining with distance. The distance at which the amount of spillovers is halved is about 1,200 kilometers. I also find that over time, technological knowledge has become considerably more global. Moreover, language skills are important for spillover diffusion. (JEL F0, O1, O3)Citation
Keller, Wolfgang. 2002. "Geographic Localization of International Technology Diffusion ." American Economic Review, 92 (1): 120-142. DOI: 10.1257/000282802760015630JEL Classification
- O33 Technological Change: Choices and Consequences; Diffusion Processes