Globalization and Knowledge Spillover: International Direct Investment, Exports and Patents

This paper examines the impact of the three main channels of international trade on domestic innovation, namely outward direct investment (ODI), inward direct investment (IDI), and exports. The number of Triadic patents serves as a proxy for innovation. The data set contains 37 countries that are considered to be highly competitive in the world market, covering the period 1994 to 2005. The empirical results show that increased exports and outward direct investment are able to stimulate an increase in patent output. In contrast, IDI exhibits a negative relationship with domestic patents. The paper shows that the impact of IDI on domestic innovation is characterized by two forces, and the positive effects of cross-border mergers and acquisitions by foreigners is less than the negative effect of the remaining IDI.

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Year of publication:	2012-06
Authors:	Chang, Chia-Lin ; McAleer, Michael ; Chen, Sung-Po
Institutions:	Facultad de Ciencias Económicas y Empresariales, Universidad Complutense de Madrid
Subject:	International direct investment \| Exports \| Imports \| Triadic Patent \| Outward direct investment \| Inward direct investment \| R&D \| negative binomial model

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Extent:	application/pdf
Series:	Documentos de Trabajo del ICAE.
Type of publication:	Book / Working Paper
Notes:	The authors are most grateful to the Editor and two referees for helpful comments and suggestions. For financial support, the first author acknowledges the National Science Council, Taiwan; and the third author acknowledges the Australian Research Council, National Science Council, Taiwan, and the Japan Society for the Promotion of Science. Number 2012-16 42 pages
Classification:	F14 - Country and Industry Studies of Trade ; F21 - International Investment; Long-Term Capital Movements ; O30 - Technological Change; Research and Development. General ; O57 - Comparative Studies of Countries
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010778712