While there is general agreement that technology differences must figure prominently in any successful account of the cross-country income variation, not much is known on the source of these technology differences. This paper examines cross-country income differences in terms of factor accumulation, domestic R&D, and foreign technological spillovers. The empirical analysis encompasses seventeen industrialized countries in four continents over three decades, at a level disaggregated enough to identify innovations in a number of key high-tech sectors. International technology transfer is found to play a crucial part in accounting for income differences. We also relate technology transfer to imports, showing that imports are often a major channel. At the same time, our analysis highlights that international technology transfer varies importantly across industries and countries.
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number
13086.
Length: Date of creation: May 2007 Date of revision: Handle: RePEc:nbr:nberwo:13086
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Find related papers by JEL classification: F1 - International Economics - - Trade F2 - International Economics - - International Factor Movements and International Business O3 - Economic Development, Technological Change, and Growth - - Technological Change
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