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By Itzhak Goldberg, Lee Branstetter, John Gabriel Goddard, Smita Kuriakose

Innovation and cross-border absorption of information are important forces at the back of monetary convergence and sustained development. Absorption of expertise is an important step to advertise the improvement of human capital and the effective base, paving the way in which for concepts on the worldwide wisdom frontier. study and improvement, patents, alternate, and international direct funding are significant channels of technological absorption, permitting diffusion of recent rules and production top practices between nations and corporations. those channels represent the relevant concentration of this examine. This research makes use of patent databases, surveys of agencies, and case stories to enquire how particular channels of absorption molds determination making approximately know-how. alternate and FDI flows convey significant promise as catalysts for the sector to improve its expertise and close to the worldwide know-how frontier. Econometric research utilizing company surveys from all Europe and valuable Asia international locations is helping to appreciate the stipulations and rules that set off organisations to include exterior wisdom and know-how into their total progress innovations.

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Extra info for Globalization and Technology Absorption in Europe and Central Asia: The Role of Trade, FDI and Cross-border Knowledge Flows

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A disproportionate share of total R&D resources remains locked up in specialized state research institutes, in which there are no strong incentives to transfer commercially useful technology developed within the institutes to private entities in the ECA economies, which could put the technology to productive use. Our results support these criticisms. 1, listing the top 10 Russia-based organizations that have obtained patent grants in the United States, the world’s largest and most important single patent jurisdiction.

1 shows these two indices for the Country Imports Exports manufacturing sector. 078 EU. 108 for which Kee et al. 131 country imposes on its imports. 085 overall trade restrictive index (OTRI)17 for tariff and non-tar- Source: Kee, Nicita, and Olarreaga 2006. iff barriers. However, it experiences smaller trade distortions on its exports from the rest of the world, with China the only country facing a lower level of restrictiveness. 2). Early on in the transition, many countries in the region cut tariffs and reduced or eliminated non-tariff barriers.

However, if it is the case that the first inventor is also the most important contributor, this convention would make this less of a limitation, as by this definition it would then capture patents in which ECA citizens have a greater contribution. We are also constrained in the time dimension: The Hall update is only complete for patents granted through 2002. S. patent grants over the 1990–2002 period for which the first inventor listed an address in one of the ECA countries. This produced slightly more than 3,000 granted patents.

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