The Pattern of International Pattenting and Technology Diffusion

Abstract

The paper focuses on the impact of R&D expenditure on labor productivity using interna-tional patent applications as a technology diffusion indicator. Considering the relationship between research and productivity, the pattern of international patenting reflects the channel between the source and the destination of transferred technology. Accounting for nonstation-arity and cointegration, I find that patent-related foreign R&D spillovers are present for a panel of 18 OECD countries. Moreover, Non-G7 OECD countries benefit more from foreign rather than domestic R&D activities. Estimates also show, that there is no significant spillover effect from bilateral trade, but confirm the impact of FDI on domestic labor productivity.