Does Foreign Direct Investment Transfer Technology Across Borders? A Reexamination

Reexamining foreign direct investment (FDI) as a potential channel for knowledge diffusion - based on industry data from seventeen OECD countries during the period 1973-2000 - we find that FDI-receiving countries benefit strongly from FDI-related knowledge spillovers. We do not find evidence for positive FDI-related technology sourcing effects. Instead, our results suggest that outward FDI might have negative effects on the output of the FDI- sending country. --foreign direct investment,knowledge spillovers

What drives trade-related R&D Spillovers? Decomposing knowlege-diffusing trade flows

Our paper decomposes knowledge-diffusing trade flows and estimates their impacts separately. Overall, trade generates positive knowledge spillovers, but the effects of intra-industry trade are ambiguous. With regard to sectoral import penetration, we find that potential positive spillovers are dominated by negative competition effects. This, however, masks the significant positive spillover effects of intra-industry trade that corresponds to international out-sourcing. --R&D,trade,productivity,spillovers,competition

Does Foreign Direct Investment Transfer Technology Across Borders? A Reexamination

Reexamining foreign direct investment (FDI) as a potential channel for knowledge diffusion -- based on industry data from seventeen OECD countries during the period 1973-2000 -- we find that FDI-receiving countries benefit strongly from FDI-related knowledge spillovers. We do not find evidence for positive FDI-related technology sourcing effects. Instead, our results suggest that outward FDI might have negative effects on the output of the FDI-sending country.foreign direct investment, knowledge spillovers

The impact of FDI on industry performance

This paper investigates the productivity effects of inward and outward foreign direct investment using industry and country level data for 17 OECD countries. The paper relates to a large recent literature on productivity spillovers from inward FDI, however, we also consider the relationship between productivity and outward FDI in the same estimation. Our results show that there are, on average, productivity benefits from inward FDI, although we can identify a number of countries which, on aggregate, do not appear to benefit in terms of productivity. On the other hand, a country's stock of outward FDI is, on average, negatively related to productivity. However, again there is substantial heterogeneity in the effect across OECD countries.Foreign direct investment, inward FDI, outward FDI, productivity, spillovers

What Drives Trade-related R&D Spillovers? Decomposing Knowledge- diffusing Trade Flows

Our paper decomposes knowledge-diffusing trade flows and estimates their impacts separately. Overall, trade generates positive knowledge spillovers, but the effects of intra-industry trade are ambiguous. With regard to sectoral import penetration, we find that potential positive spillovers are dominated by negative competition effects. This, however, masks the significant positive spillover effects of intra-industry trade that corresponds to international outsourcing.R&D, trade, productivity, spillovers, competition

A Schumpeter-Inspired Approach to the Construction of R&D Capital Stocks

A new method for constructing R&D capital stocks is proposed. Following Schumpeter, the development of R&D capital stocks is modelled as a process of creative destruction. Newly generated knowledge is assumed not only to add to the existing R&D capital stocks but also, by displacing old knowledge, to destroy part of that capital. This is in stark contrast to the perpetual inventory method, which postulates a constant rate of depreciation. We compare both methods by estimating the impact of R&D and spillovers on output in OECD countries, and find that the new approach leads to more sensible and robust results.R&D capital stocks, knowledge spillovers, creative destruction

The Impact of Entry and Competition by Open Source Software on Innovation

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The Shipbuilding Industry in East and West: Industry Dynamics, Science and Technology Policies and Emerging Patterns of Cooperation

Shipbuilding has changed from a "heavy industry" to become a capital- and technologyintensive activity over the last decades. While Japanese, South Korean and Western European yards dominate the merchant shipbuilding market so far, Eastern European yards are increasingly active, in particular in low and medium complex ships. We develop a market analysis and identify the axes of competition in international civil shipbuilding. From there, we analyze the restructuring process of Eastern European yards. Polish yards have proceeded with relatively quick enterprisation, establishing strong links to domestic and international suppliers. Restructuring in Russian and Ukrainian yards is blocked by local obstacles to enterprization, leading to increasing competitiveness gaps with CEE-yards. We conclude that a science&technology policy should be demand-oriented and target only the clearly identified obstacles to enterprization.

The Impact of Entry and Competition by Open Source Software on Innovation Activity

This paper presents the stylized facts of open source software innovation and provides empirical evidence on the impact of increased competition by OSS on the innovative activity in the software industry. Furthermore, we introduce a simple formal model that captures the innovation impact of OSS entry by examining a change in market structure from monopoly to duopoly under the assumption that software producers compete in technology rather than price or quantities. The paper identifies a pro-innovative effect of OSS competition.open source software, innovation, strategic interaction