The Dynamics of Global Technology and Knowledge Flows

This paper is intended to provide policymakers with an overview of how technology and knowledge flow at the regional and global levels. After presenting the economic role of knowledge as well as a number of basic concepts related to its dissemination, this paper identifies certain pre-requisites for successful knowledge transfer. It subsequently discusses various channels for transfer and diffusion, including integration by firms in global value chains, participation by public and private actors in knowledge networks, and the movement of skilled individuals among institutions and across geographic regions. Throughout, the paper highlights the gradual nature of knowledge diffusion, as well as the role of collaboration in the generation, dissemination, and adaptation of innovative solutions. Finally, the paper identifies the types of policy environments that may best attract and accelerate knowledge flows, suggesting certain actions that policymakers can take to improve their region’s innovative capacity