Globalization and Knowledge Spillover: International Direct Investment, Exports and Patents

Chia-Lin Chang, Sung-Po Chen and Michael McAleer
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Sung-Po Chen: Econometric Institute, Erasmus School of Economics, Erasmus University Rotterdam

No 721, KIER Working Papers from Kyoto University, Institute of Economic Research

Abstract: This paper examines the impact of the three main channels of international trade on domestic innovation, namely outward direct investment, inward direct investment (IDI) and exports. The number of Triadic patents serves as a proxy for innovation. The data set contains 37 countries that are considered to be highly competitive in the world market, covering the period 1994 to 2005. The empirical results show that increased exports and outward direct investment are able to stimulate an increase in patent output. In contrast, IDI exhibits a negative relationship with domestic patents. The paper shows that the impact of IDI on domestic innovation is characterized by two forces, and the positive effect of cross-border mergers and acquisitions by foreigners is less than the negative effect of the remaining IDI.

Keywords: International direct investment; Export; Triadic Patent; Outward Direct Investment; Inward Direct Investment; R&D; negative binomial model (search for similar items in EconPapers)
JEL-codes: F14 F21 O30 O57 (search for similar items in EconPapers)
Pages: 39pages
Date: 2010-08
New Economics Papers: this item is included in nep-cse, nep-ino, nep-ipr and nep-pr~
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Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Globalization and knowledge spillover: international direct investment, exports and patents (2013)
Working Paper: Globalization and Knowledge Spillover: International Direct Investment, Exports and Patents (2012)
Working Paper: Globalization and Knowledge Spillover: International Direct Investment, Exports and Patents (2010)
Working Paper: Globalization and Knowledge Spillover: International Direct Investment, Exports and Patents (2010)
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