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Convergence and polarization in global income levels: a review of recent results on the role of international technology diffusion

Book or journal references : Research Policy, vol. 32, pp. 1055-1079 (2003).

Author(s) : Gong , G. and Keller , W.

Abstract :

We review the recent literature on technological change and diffusion to shed new light on the evolution of the world's cross-country income distribution. Technology is viewed as non-rival knowledge in the sense that firms in more than one country can simultaneously use it. R&D investments generate often also a return outside the innovating firm itself; these knowledge externalities are called technology spillovers. We emphasize that technology is to some extent tacit, and technology diffusion often involves the face-to-face interaction of people. Our paper reviews the evidence on whether international trade, foreign direct investment, and other cross-border activities are important for technology diffusion. (C) 2002 Elsevier Science B.V. All rights reserved.


Keywords :

technology spillovers; tacit knowledge; foreign direct investment; trade; communications RESEARCH-AND-DEVELOPMENT; DEVELOPMENT SPILLOVERS; PRODUCTIVITY GROWTH; GEOGRAPHIC LOCALIZATION; KNOWLEDGE SPILLOVERS; ECONOMIC-DEVELOPMENT; CAPITAL GOODS; TRADE; MODEL; FIRMS

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