Sources of knowledge flow between developed and developing nations

Gaétan De Rassenfosse,Florian Seliger

doi:10.1093/scipol/scz042

Gaétan De Rassenfosse, Florian Seliger

Open Access

https://doi.org/10.1093/scipol/scz042

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Abstract

Abstract This article provides a long-term view on the sources of knowledge flow between developed and developing nations. It relies on patent data to explore three potential sources: R&D collaboration, technology sourcing, and technology transfer. All three sources provide a very consistent message. First, knowledge flows from East Asia, particularly China, are occurring more frequently. Second, knowledge flows are increasingly concentrated in information and communication technologies. Third, the USA and Canada had traditionally larger patenting activity with Asia than Europe, but the share of activity between Europe and Asia has been increasing in recent years. Larger patenting activity between the USA and Canada and Asia implies that North America is more likely to benefit from the reverse knowledge flows than Europe as China progresses toward becoming a technological leader.

Highlights

R&D globalization is a defining feature of modern innovation systems and a major driver of productivity growth (Eaton & Kortum 1996; Thomson & de Rassenfosse 2016)
We exclude patents that were co-applied. This restriction ensures that we exclude patents arising from technology collaboration and, that we identify more accurately cases of technology sourcing
This paper studied the sources of cross-border knowledge flows through the lens of patent data

Summary

Introduction

R&D globalization is a defining feature of modern innovation systems and a major driver of productivity growth (Eaton & Kortum 1996; Thomson & de Rassenfosse 2016). For developing countries, attracting foreign knowledge from more developed regions is both crucial and challenging. It is crucial because knowledge flows from the technology frontier are a key source of learning (Griffith, Redding, & Van Reenen, 2004; Seliger, 2016). It is challenging because developing countries lack the knowledge base and infrastructure to fully benefit from them. This paper contributes to the literature on cross-border knowledge flows in two ways It puts the spotlight on flows between developed and developing economies. Patent transfers from developing to developed economies exist, the volumes are more modest, reaching about a third of the volumes of the opposite direction

Method and Data

Findings

Concluding Remarks