Globalization and technology absorption in Europe and Central Asia : the role of trade, FDI, and cross-border knowledge flows / Itzhak Goldberg ... [and others].

Format:

Book

Government document

Contributor:

Goldberg, Itzhak.

Series:

World Bank working paper ; no. 150.

World Bank working paper ; no. 150

Language:

English

Subjects (All):

Technology transfer--Asia, Central.

Technology transfer.

Technology transfer--Europe.

Globalization.

Investments, Foreign.

Europe.

Investments, Foreign--Asia, Central.

Investments, Foreign--Europe.

Globalization--Asia, Central.

Globalization--Europe.

Central Asia.

Physical Description:

xxiii, 123 pages : illustrations ; 26 cm.

Place of Publication:

Washington, D.C. : World Bank, [2008]

Summary:

Globalization and Technology Absorption in Europe and Central Asia is part of the World Bank Working Paper series. These papers are published to communicate the results of the Bank's ongoing research and to stimulate public discussion.

Innovation and cross-border absorption of knowledge are central forces behind economic convergence and sustained growth. Absorption of technology is considered a necessary step to promote the development of human capital and the productive base, paving the way for innovations at the global knowledge frontier. Research and development, patents, trade, and foreign direct investment are major channels of technological absorption, allowing diffusion of new ideas and manufacturing best practices among countries and firms. These channels constitute the central focus of this study.

This study uses patent databases, surveys of enterprises, and case studies to investigate how the presence of specific channels of absorption molds decision making about technology. Trade and FDI flows show considerable promise as catalysts for the region to upgrade its technology and near the global technology frontier. Econometric analysis using enterprise surveys from all ECA countries helps us understand the conditions and policies that induce firms to incorporate external knowledge and technology into their overall growth strategies.

We find evidence of learning by exporting, underscoring the importance of trade as a driver of absorption. A case study of several manufacturing firms in Serbia complements this perspective, providing a detailed picture of the positive dynamics that are produced by FDI, particularly in terms of investment and risk-taking incentives that are critical for technology absorption. Examination of patent citations shows that cross-border knowledge flows need to be strengthened to foster closer connections between the region's public sector R&D and global private sector efforts.

Contents:

Definition of Innovation and Knowledge Absorption 1

Diffusion of Knowledge in Support of Productivity Growth: Literature Review 2

Conceptual Framework: Economic Conditions and Capacities for Knowledge Absorption 4

2 Patents as Indicators of Technological Activity in the ECA Region 7

Patent Data Provide a View of the Knowledge Absorption Process 7

Implications for Policy 18

3 The Links among Knowledge Absorption, Trade, and FDI 23

Trade and its Benefits 24

Foreign Direct Investment 31

Discussion of Results with Implications for Policy 49

4 How Does FDI via Company Acquisition Impact Technology Absorption? A Case Study of Serbian Enterprises 55

Investment Climate and Sequence of Mergers and Acqusitions, and Greenfield FDI 57

The Background of the Serbian Privatization Program 61

Policy Implications from Case Studies 76

A Statistical Tables for Chapter 2 83

B Regression Variables Used in Chapter 3 85

C Questionnaire for Company Interviews 87

D Correlates of ICT and Quality Certification 93

1 Correlations of "Composite" Measure of Absorption with Firm Characteristics [+] positive correlation, [-] negative correlation xix

2 Comparing the Effects of Privatization on FDI versus Domestically-owned Firms xxi

2.1 Top 10 Russian Generators of U.S. Patents 15

3.1 Trade Restrictiveness Indices 27

3.2 Logistics Performance Indices, 2007 30

3.3 Regression Results for New Product Introductions as Dependent Variable 39

3.4 Regression Results for Product Upgrades as Dependent Variable 42

3.5 Regression Results for Introduction of New Technology as Dependent Variable 44

3.6 Linear Regression Results Based on a "Composite" Measure of Absorption 46

3.7 Regression Results Based on Composite Measure of Absorption, Panel Data 48

4.1 Results of the Serbian Privatization Program 62

4.2 Revenue and Employment Trends Pre- and Post-acquisition 65

4.3 Productivity Trends Pre- and Post-acquisition 67

4.4 Financial Ratios Pre- and Post-acquisition 69

A.1 Patent Citations in ECA and Comparator Regions 83

A.2 Hypothesis Tests for Equality of Sample Means 84

B.1 Definition of Variables Used in Regressions 85

D.1 ISO Certification and Web Use across Sectors 97

D.2 ISO Certification and Web Use, Firm Size, and Age 98

D.3 ISO Certification and Web Use, Firm Ownership, and Trade Integration 98

D.4 Variable Definitions 102

D.5 Determinants of ISO Certification and Web Use-Cross-Sectional Regressions 104

D.6 Determinants of Technology Adoption across Country Groups 106

D.7 Determinants of ISO Certification and Web-Use-Panel Regressions 108

1 U.S. Patents Granted per Million Population xiii

2 U.S. Patent Grants for the ECA 7 vs. India and China xiv

3 Indigenous Patents and Coinventions in ECA: 1993-2007 xv

4 Trade Restrictiveness Index (TRI), 2005-06 xvii

5 FDI Inflows as a Percentage of GDP, 2005 xviii

1.1 Innovation and Absorption as Inputs into Growth and Productivity 5

2.1 ECA Region Patenting in the EPO 9

2.2 ECA Patenting in Europe, by First Inventor Country of Residence 10

2.3 ECA Coinvention by Partner Country 11

2.4 U.S. Patent Grants for the ECA 7, India, and China 12

2.5 The Expanding Role of International Coinvention in the ECA 7 13

2.6 International Coinvention in Russia 14

2.7 National Innovation Systems 21

3.1 Overall Trade Restrictiveness Index-tariff (all goods), 2006 28

3.2 Overall Trade Restrictiveness Index-tariff + non-tariff (all goods), 2006 28

3.3 35

3.4 35

D.1 ISO Certification and Web Use across ECA Countries 96

3.1 Measuring the Impact of Trade and FDI on Technology Absorption 34

3.2 New Foreign Competition: Lowering Profits and Raising Efficiency 35

4.1 Methodology: Company Selection, Data Sources, Fieldwork 63

4.2 A Closer Look at Productivity Trends 68

D.1 Identification Strategy 101.

Notes:

Includes bibliographical references (pages 115-123) and index.

ISBN:

9780821375839

0821375830

9780821375846

0821375849

OCLC:

227015912