International Technology Diffusion of Joint and Cross-border Patents

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With the advent of globalization, economic and financial interactions among countries have become widespread. Given technological advancements, the factors of production can no longer be considered to be just labor and capital. In the pursuit of economic growth, every country has sensibly invested in international cooperation, learning, innovation, technology diffusion and knowledge. In this paper, we use a panel data set of 40 countries from 1981 to 2008 and a negative binomial model, using a novel set of cross-border patents and joint patents as proxy variables for technology diffusion, in order to investigate such diffusion. The empirical results suggest that, if it is desired to shift from foreign to domestic technology, it is necessary to increase expenditure on R&D for business enterprises and higher education, exports and technology. If the focus is on increasing bilateral technology diffusion, it is necessary to increase expenditure on R&D for higher education and technology.
JEL: F14, F21, O30, O57. * For financial support, the first author wishes to thank the National Science Council, Taiwan, and the second author is most grateful to the Australian Research Council and the National Science Council, Taiwan. This paper was completed during a visit by the first author to the Erasmus School of Economics, whose hospitality is greatly appreciated.
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