KTH/CESIS Working Paper Series in Economics and Institutions of Innovation
Technology Spillovers and Innovation - the importance of domestic and foreign sources
Abstract: This paper asks whether there is evidence of higher
innovation output from firms where there is more foreign activity in terms
of foreign direct investments (FDI), trade and collaboration on innovation,
or if proximity between innovators is more important. With a sample of
about two-thirds of Swedish firms with at least 10 employees and by
accounting for selectivity and simultaneity biases, sector specific effects
and firm specific effects, we find robust evidence for import spill over.
There is also support for international knowledge transfer to the local
firm from foreign units indicating the importance of both inward and
outward FDI. We only find some weak find association between proximity to
local partners and innovation. The most important aspect of the local
milieu on innovation is skilled labour.
Keywords: Innovation; knowledge spillovers; proximity; trade; FDI; (follow links to similar papers)
JEL-Codes: D21; D21; F23; F23; L21; L22; O31; O32; (follow links to similar papers)
44 pages, February 28, 2007, Revised June 29, 2007
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