GEP Research Paper 02/24
Frontier Technology, Absorptive Capacity and Distance
R. Kneller
Abstract
The recent literature on international technology diffusion has demonstrated the positive effect improvements in foreign country productivity can have on domestic productivity. Using a sample of 9 manufacturing industries in 12 OECD countries over the period 1972 to 1992 we search for find evidence that absorptive capacity and physical distance are important for technology transfer. We find strong evidence that the level of productivity depends on human capital, that the effect of physical distance are weakest at the end of the time period and in some industries and that R&D is important for productivity but not technology transfer.
Issued in October 2002.
This paper is available in PDF format .