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Neighbors and the Evolution of the Comparative Advantage of Nations: Evidence of International Knowledge Diffusion?
The literature on knowledge diffusion shows that knowledge decays strongly with distance.
The literature on knowledge diffusion shows that it decays strongly with distance.
Future growth will depend on harnessing the forces of knowledge diffusion which propelled productivity growth for much of the 20th century.
This shows that informal contacts represent an important channel of knowledge diffusion.
However, there has been a considerable time lag in knowledge diffusion and policy adoption.
I test for knowledge diffusion from subsidised technology firms transmitted through the labor market.
Instead, they appear to positively influence innovation outputs by either increasing knowledge diffusion or strengthening competition.
While these results could be driven by a common third factor that escapes our controls, they are what would be expected from the localized character of knowledge diffusion.
"Neighbors and the Evolution of the Comparative Advantage of Nations: Evidence of International Knowledge Diffusion?" HKS Faculty Research Working Paper Series RWP13-025, August 2013.
"International Knowledge Diffusion and the Comparative Advantage of Nations". HKS Faculty Research Working Paper Series and CID Working Papers (RWP12-020 and 235), May 2012.
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