DP3133 International Technology Diffusion

Author(s): Wolfgang Keller
Publication Date: January 2002
Keyword(s): convergence, disembodied technology, divergence, embodied technology, foreign direct investment, knowledge globalization, learning externalities, spatial productivity effects, spillovers
JEL(s): F00, F10, O30
Programme Areas: International Macroeconomics, International Trade and Regional Economics
Link to this Page: www.cepr.org/active/publications/discussion_papers/dp.php?dpno=3133

I discuss the concept and empirical importance of international technology diffusion from the point of view of recent work on endogenous technological change. In this literature, technology is viewed as technological knowledge. I first review major concepts and discuss the relation of international technology diffusion with other mechanisms of economic growth in open economies. The main section of the Paper provides a review of recent empirical results on (i) basic results in international technology diffusion; (ii) the importance of specific channels of diffusion, in particular trade and foreign direct investment; (iii) the spatial distribution of technological knowledge and (iv) other issues.