| This dissertation extends David Coe and Elhanan Helpman (1995) by exploring the possibility that importing may not be the only means by which international knowledge spillovers occur. In addition, exports and foreign direct investment, both inflows and outflows, may also be means of transmitting knowledge. This dissertation examines the existence of knowledge spillovers on the international competition within industries and its impact upon growth at the industry, national, and international level. Chapter 1 is the introduction, while Chapter 2 examines knowledge spillovers within and across industries. Chapter 3 analyzes international knowledge spillovers by examining the role of international trade as a mechanism for transmitting these spillovers, while Chapter 4 focuses on direct investment as another channel to transmit knowledge and a means of spurring on innovation. Chapter 5 compares and contrasts the two different mechanisms for transmitting international knowledge spillovers and finally Chapter 6 is the conclusion. Unlike previous research this work pulls together all four of the possible channels for transmitting knowledge spillovers and analyzes this issue at a more detailed level than previous discussions.;Each chapter upon examining the relationship between total factor productivity and the acquisition of productive knowledge through research and development discovers the importance of knowledge spillovers. This dissertation shows all countries, including the United States, transmit and receive international knowledge spillovers as a result of trade and foreign direct investment. Both types of channels facilitate knowledge spillovers but they are not identical. In this analysis, the dissertation shows some countries receive and provide more productive knowledge spillovers than others, while other economies are much more reliant upon domestic knowledge spillovers. Clearly, knowledge spillovers create a large pool of productive knowledge and access to this pool of informational spillovers that increases growth at the firm, industry, and national levels. With the existence of intraindustry, interindustry and international knowledge spillovers, firms from within and from outside of a particular industry or country can take advantage of knowledge spillovers. The production of new research and development leads to an ever-increasing stock of productive knowledge and this capital stock is not national but international. |
