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International spillovers and absorptive capacity: a cross-country, cross-sector analysis based on European patents and citations

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This paper provides an empirical assessment of the effect of national and international knowledge spillovers on innovation at a finely defined sectoral level for six major industrialised countries over the period 1981-1995. International spillovers are always found to be effective in increasing innovative productivity. The paper then uses self-citations to investigate the role of prior R&D experience in enhancing a country¿s ability to understand and improve upon external knowledge (absorptive capacity). The empirical results show that absorptive capacity increases the elasticity of a country¿s innovation to both national and international spillovers. The larger the gap of a country with the technological leaders, the weaker is this effect, but the larger is the country¿s potential to increase it.

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en

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application/pdf

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http://eprints.lse.ac.uk/6737/1/International_Spillovers_and_Absorptive_Capacity_A_cross-country%2C_cross-sector_analysis_based_on_European_patents_and_citations.pdf

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