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Trade and Innovation: Synthesis Report

Author

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  • Nobuo Kiriyama

    (OECD)

Abstract

Innovation is critical to creating new sources of growth. Trade is one of the framework conditions that can strengthen innovation in the business sector, as set out in the OECD Innovation Strategy in 2010. This paper broadly sets out three channels through which trade affects innovation. First, imports and foreign direct investment (FDI) as well as trade in technology serve as channels of technology diffusion. Second, imports, FDI and technology licensing contribute to intensifying competition, which can affect incentives for innovation. Third, exports can affect innovation as it serves as a learning opportunity and gives incentives for innovative activities...

Suggested Citation

  • Nobuo Kiriyama, 2012. "Trade and Innovation: Synthesis Report," OECD Trade Policy Papers 135, OECD Publishing.
    • Handle: RePEc:oec:traaab:135-en
    DOI: 10.1787/5k9gwprtbtxn-en
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    Cited by:

    1. Carlo Altomonte & Tommaso Aquilante & Gábor Békés & Gianmarco I.P. Ottaviano, 2013. "Internationalization and innovation of firms: evidence and policy [Managing knowledge within and outside the multinational corporation]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 28(76), pages 663-700.
    2. Ousama Ben-Salha & Abir Abid & Ghassen El Montasser, 2023. "Linear and Nonlinear Causal Linkages Between Exports and Growth in Next Eleven Economies," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(2), pages 1194-1226, June.
    3. Liu, Qing & Qiu, Larry D., 2016. "Intermediate input imports and innovations: Evidence from Chinese firms' patent filings," Journal of International Economics, Elsevier, vol. 103(C), pages 166-183.
    4. Marco Di Cintio & Emanuele Grassi & Claudio Petti, 2022. "Import, Export and Trade Intermediaries: What Matters the Most?," International Business Research, Canadian Center of Science and Education, vol. 15(4), pages 1-18, April.
    5. Dinithi N. Jayasekara & Jonathan H. W. Tan, 2024. "How do intercultural proximity and social fragmentation promote international patent cooperation?," Small Business Economics, Springer, vol. 63(1), pages 421-445, June.
    6. Naveed Ul Haq, 2023. "Impact of FDI and Its Absorption Capacity on the National Innovation Ecosystems: Evidence from the Largest FDI Recipient Countries of the World," Foreign Trade Review, , vol. 58(2), pages 259-288, May.
    7. Zheng, Mingbo & Feng, Gen-Fu & Feng, Suling & Yuan, Xuemei, 2019. "The road to innovation vs. the role of globalization: A dynamic quantile investigation," Economic Modelling, Elsevier, vol. 83(C), pages 65-83.
    8. Guan, Chenghua & Huang, Jinyuan & Jiang, Ruyue & Xu, Wanting, 2023. "The impact of pilot free trade zone on service industry structure upgrading," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 472-491.
    9. Li, Juncheng & Qin, Xiuting & Tang, Jian & Yang, Lu, 2022. "Foreign trade and innovation sustainability: Evidence from China," Journal of Asian Economics, Elsevier, vol. 81(C).
    10. Idris, Bochra & Saridakis, George & Khan, Zaheer, 2022. "The Effect of Outward and Inward Internationalisation on Different Types of Innovation: Evidence from UK SMEs," Journal of International Management, Elsevier, vol. 28(2).
    11. David Haugh & Alexandre Kopoin & Elena Rusticelli & David Turner & Richard Dutu, 2016. "Cardiac Arrest or Dizzy Spell: Why is World Trade So Weak and What can Policy Do About It?," OECD Economic Policy Papers 18, OECD Publishing.
    12. Shrutika Mishra & A R Tripathi & R S Singh & Priyanshu Mishra, 2024. "Comparative Analysis of Digital Business Models," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 6666-6705, June.
    13. Qing Liu & Larry D Qiu, 2017. "Effects of Intermediate Input Tariff Reduction on Innovations in China," Working Papers 022017, Hong Kong Institute for Monetary Research.
    14. Domini, Giacomo, 2015. "The innovation-trade nexus: Italy in historical perspective (1861-1939)," MERIT Working Papers 2015-055, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    15. Kyle, Margaret K., 2022. "Incentives for pharmaceutical innovation: What’s working, what’s lacking," International Journal of Industrial Organization, Elsevier, vol. 84(C).
    16. Joan Freixanet, 2014. "Innovation and internationalization: relationship and implications for management and public policy," International Journal of Entrepreneurial Knowledge, Center for International Scientific Research of VSO and VSPP, vol. 2(2), pages 57-75, December.

    More about this item

    Keywords

    competition and innovation; exports and innovation; international technology diffusion; multilateral trade negotiations; NAMA notifications; trade and innovation; World Trade Organisation;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy

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