RESEARCH AND ANALYSIS: WORKING PAPERS

Knowledge spillovers through international supply chains

Using industry-level R&D and patent data for a sample of 29 countries for the period 2000- 2008, we study the importance of international supply linkages for knowledge spillovers. We find a statistically significant effect of supply chains on international knowledge spillovers. We show that knowledge spillovers increase with the intensity of supply chains linkages between countries.

We also show that the evidence that knowledge spillovers flow along the supply chains is more robust than the traditional finding that knowledge spillovers depend on geographical distance or trade flows. Our findings support policies that favour participation in supply chains to foster economic development, but also show that potential gains depend on the type of participation.

 

No: ERSD-2014-11

Authors: Roberta Piermartini and Stela Rubínová

Manuscript date: July 2014

Key Words:

Knowledge spillovers, International production networks, Intermediate inputs trade, Innovation

JEL classification numbers:

F43, F63, O31

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Disclaimer 

This is a working paper, and hence it represents research in progress. The opinions expressed in this paper are those of its authors. They are not intended to represent the positions or opinions of the WTO or its members and are without prejudice to members' rights and obligations under the WTO. Any errors are attributable to the authors.

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