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The role of R&D and input trade in productivity growth: innovation and technology spillovers

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  • Dongyeol Lee

    (International Monetary Fund and Bank of Korea)

Abstract

Productivity improvements generally are driven by technology innovation and its spillovers. This study explores the role of R&D investment and intermediate input trade in productivity growth using country-industry-level data for 25 advanced and emerging economies. This paper confirms that R&D investment and intermediate input import/export (both intra- and inter-industry) with technologically advanced economies play important roles in productivity growth in non-frontier countries. We further find that the productivity gains of technology spillovers via input trade channels are likely larger for countries/industries where technology converges to the frontier. These findings imply that the recent slowdown in R&D investment and intermediate input trade in some advanced economies may contribute to declining productivity growth. The potential productivity improvements from R&D investment and free trade as well as the importance of domestic capacity in facilitating technology spillovers should be recognized.

Suggested Citation

  • Dongyeol Lee, 2020. "The role of R&D and input trade in productivity growth: innovation and technology spillovers," The Journal of Technology Transfer, Springer, vol. 45(3), pages 908-928, June.
    • Handle: RePEc:kap:jtecht:v:45:y:2020:i:3:d:10.1007_s10961-019-09717-0
    DOI: 10.1007/s10961-019-09717-0
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