International knowledge and national innovation policy: Impact of foreign knowledge on domestic productivity

Abstract

SummaryThis paper examines the policy implications from the growing importance of knowledge generated elsewhere for domestic productivity growth. Several studies have addressed the significance of international knowledge flows and spillovers, and the various channels through which these are transmitted. Relatively few studies have focussed on the translation of these results into implications for current (national) innovation policy. From a policy point of view, the question arises whether it is possible to increase a country’s benefits from foreign knowledge. What are the obstacles to international knowledge flows and how can they be removed? Some policy options are formulated. The formulation of policy implications is complicated by the fact that, within the literature to date, only few results have been solidly established – and many important topics have not yet been considered. Therefore, some suggestions for the formulation of a coherent policy research agenda are made.