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International R&D Transfer and Technical Efficiency: Evidence from Panel Study Using Stochastic Frontier Analysis
September 13, 2012 Editor 0
Publication year: 2012
Source:World Development, Volume 40, Issue 10
Miao Wang, M. C. Sunny Wong
We study the effect of foreign research and development (R&D) transferred through imports and foreign direct investment (FDI) on domestic technical efficiency using stochastic frontier analysis. Unbalanced panel results from a 77-country sample over 1986–2007 show that FDI- and imports-transferred foreign R&D have a significant impact on domestic country’s technical efficiency. Furthermore, we observe a complementarity between FDI-transferred R&D and domestic human capital. In other words, the domestic country needs to obtain a threshold level of human capital to benefit from FDI-transferred R&D. Other macro conditions such as infrastructure, political stability, and urbanization also help to improve the technical efficiency of a country.The rest is here: International R&D Transfer and Technical Efficiency: Evidence from Panel Study Using Stochastic Frontier Analysis
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Categories: Development, Technology Transfer
Tags: capital, domestic, FDI-transferred R&D, foreign, human, improve, International R&D Transfer and Technical, political, R&D Transfer and Technical Efficiency, show, stability, stochastic frontier analysis, urbanization
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