International Patent Pattern and Technology Diffusion

The paper focuses on the impact of business related R&D spending on input factor productivity (IFP) using international patent applications as a technology diffusion channel. Considering the relationship between research and productivity, international patent pattern reflects the link between the source (R&D) and the use (IFP). To estimate patent related spillover effects, I use the estimation techniques developed and proposed by Kao and Chiang (1998) in order to deal with nonstationary and cointegration and to obtain reliable coefficients. I find that patent related foreign R&D spillover effects are present and that the impact on labor productivity for Non-G7 countries is higher due to foreign rather than domestic R&D activities.