Abstract
This paper 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 with East Asia, particularly China, are occurring more frequently. Second, knowledge flows are increasingly concentrated in information and communication technologies. Third, the United States & 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. Fourth, larger patenting activity between the United States & Canada and Asia implies that the U.S./Canada region is more likely to benefit from reverse knowledge flows as China progresses towards becoming a technological leader.
Highlights
Research and development (R&D) globalization is a defining feature of modern innovation systems and a major driver of productivity growth (Eaton and Kortum 1996; Thomson and de Rassenfosse 2019)
We find that there has been a large shift toward R&D collaboration and technology sourcing with Asian countries
This article studied the sources of cross-border knowledge flows through the lens of patent data
Summary
Research and development (R&D) globalization is a defining feature of modern innovation systems and a major driver of productivity growth (Eaton and Kortum 1996; Thomson and de Rassenfosse 2019). 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 et al 2004; Seliger 2016). Developing countries act as important suppliers of specific technologies and provide human capital necessary for the division of labor (Branstetter et al 2014; Zhao 2006) They may have large populations making them attractive markets. This article 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
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