We present a class of dynamic general-equilibrium models of education, innovation and technology transfer to explain the evolution of industries and aggregate growth in closed and open economies. Firms employ educated workers in order to develop higher-quality products. The realization of...

We identify strong cross-border institutions as a driver for the globalization of in-novation. Using 67 million patents from over 100 patent offices, we introduce novel measures of innovation diffusion and collaboration. Exploiting staggered bilateral in-vestment treaties as shocks to...

The treatment of foreign investors has been a contentious topic in U.S. entrepreneurship policy in recent years. This paper examines foreign corporate investments in Silicon Valley from a theoretical and empirical perspective. We model a setting where such funding may allow U.S. entrepreneurs to...

This study examines whether and to what extent emerging-market multinational enterprises (EM MNEs) can use outward FDI in a developed market to capture knowledge spillovers so as to improve their technological capabilities at home. We refer to this as a “reverse spillover” effect on parent...

The study is to develop an extended North-South model to analyze the IPR conflict and possible policy implications for the pharmaceutical industry. In this proposed theoretical and empirical work, innovation from the North, followed by imitation in the South (India and Bangladesh), and Foreign...

Foreign direct investment (FDI) has become a driver of growth in both developed and developing countries, as it enables the transfer of know-how and advanced technologies to host economies. This policy note discusses how FDI can effectively support innovation and green growth within the European...

The dynamic effects of Foreign Direct Investment in Portugal allowed for a structural shift in exports towards technology-intensive activities. However, since 2000, several factors, largely triggered by the global financial crisis, led to a drop in industrial output along with a reduction in FDI...

This paper relates to the literature on pecuniary externalities from FDI. Their transmission mechanism is complex, because pecuniary externalities may cause knowledge externalities and inversely. Moreover, each type of externality, or a combination of both, may increase firm productivity. Thus,...

Does FDI affect productivity growth, innovation, and knowledge sourcing activities of domestic firms? This study employs detailed firm-level panel-data from Estonia's manufacturing sector to investigate different channels through which FDI can affect domestic firms. I use instrumental variables...

This paper examines how foreign-owned and domestically owned firms transform innovation into employment growth. The empirical analysis, based on the model of Harrison, Jaumandreu, Mairesse and Peters (2008) and CIS data for 16 countries, reveals important differences between the two groups: Due...