Abstract
This chapter measures the extent to which research and development (R&D) activities are implemented on an international basis, and in particular in China and India. It focuses on the cross-border ownership of technology: an invention made in country A is owned by a firm based in country B, and an invention owned by a firm in country B is commercialised in yet another country. Innovative activity and capabilities are essential for economic growth and development. Empirical studies suggest a direct relationship between R&D and growth. Enterprises are the principal agents of innovation today, but they do not innovate and learn in isolation. They rely on intricate links with other firms and with public research institutions, universities and other knowledge-creating bodies. The current analysis is based on all types of patents, including those filed by small firms, large domestic firms, public institutions, and universities, which means that the degree of internationalisation of a country is fully represented.
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