Are North-South Technological Spillovers Substantial? A dynamic panel data model estimation
Watu Wamae
#2006-023
This paper argues that actual technological spillovers are not
substantial in developing countries because of the absence of an
absorptive capacity. We carry out a panel data analysis in an attempt to
gain insight into the specific aspects that enable economies to benefit
from the backlog of existing knowledge. Our findings indicate that low
productivity effects of human capital coupled with weak or virtually
inexistent systems of innovation are at the root of the observed
ambiguity with regard to the spillovers gains that are expected to play
a significant role in sparking growth.
Keywords: absorptive capacity, spillovers, developing countries, systems
of innovation
JEL codes: C33, O47, O57
ISSN 1871-9872