Does knowledge spill over across borders and technology regimes?

Jaap Bos, Bertrand Candelon, Claire Economidou

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Abstract

This paper investigates whether technology spills over across national borders and technology regimes. We advocate a modeling strategy where improvements in technical efficiency capture technology spillovers as industries absorb and implement the best-practice technology. Dynamic panel-based techniques are used to determine whether efficiency series move together in the long run (cointegrate) and/or move closer together over time (converge). We control for technological heterogeneity and for cross-sectional dependence in the data. For a panel of manufacturing industries in six EU countries, we find evidence of technology spillovers and convergence among industries’ efficiency levels across countries and mainly across adjacent technology regimes.
Original languageEnglish
Pages (from-to)63-82
Number of pages20
JournalJournal of Productivity Analysis
Volume46
Issue number1
DOIs
Publication statusPublished - Aug 2016

JEL classifications

  • c23 - "Single Equation Models; Single Variables: Models with Panel Data; Longitudinal Data; Spatial Time Series"
  • l60 - Industry Studies: Manufacturing: General
  • o14 - "Industrialization; Manufacturing and Service Industries; Choice of Technology"

Keywords

  • Technology spillovers
  • Efficiency
  • Panel cointegration
  • Convergence
  • Manufacturing industries
  • 2 FACES
  • HETEROGENEOUS PANELS
  • RESEARCH-AND-DEVELOPMENT
  • OECD INDUSTRIES
  • DOMESTIC FIRMS
  • FOREIGN DIRECT-INVESTMENT
  • TECHNICAL CHANGE
  • UNIT-ROOT TESTS
  • ABSORPTIVE-CAPACITY
  • PRODUCTIVITY GROWTH

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