Template-type: ReDIF-Paper 1.0
Author-Name: Chia-Lin Chang
Author-Email: changchialin@nchu.edu.tw
Author-Person: pch286 
Author-Workplace-Name: Department of Applied Economics, Department of Finance, National Chung Hsing University
	Taichung, Taiwan
Author-Name: Sung-Po Chen
Author-Workplace-Name: Department of Applied Economics, National Chung Hsing University Taichung, Taiwan
Author-Name: Michael McAleer
Author-Person: pmc90 
Author-Workplace-Name: Econometric Institute, Erasmus School of Economics, Erasmus University Rotterdam and Tinbergen Institute,
	The Netherlands, Department of Quantitative Economics, Complutense University of Madrid, and Institute of
	Economic Research, Kyoto University. 
Title: Globalization and Knowledge Spillover: International Direct Investment, Exports and Patents
Abstract: This paper examines the impact of the three main channels of international trade on domestic innovation, 
	namely outward direct investment (ODI), inward direct investment (IDI), and exports. The number of Triadic 
	patents serves as a proxy for innovation. The data set contains 37 countries that are considered to be 
	highly competitive in the world market, covering the period 1994 to 2005. The empirical results show that 
	increased exports and outward direct investment are able to stimulate an increase in patent output. In 
	contrast, IDI exhibits a negative relationship with domestic patents. The paper shows that the impact of IDI 
	on domestic innovation is characterized by two forces, and the positive effects of cross-border mergers and 
	acquisitions by foreigners is less than the negative effect of the remaining IDI.
Classification-JEL: F14, F21, O30, O57.
Keywords: International direct investment, Exports, Imports, Triadic Patent, Outward direct investment, Inward direct 
	investment, R&D, negative binomial model.
Note: The authors are most grateful to the Editor and two referees for helpful comments and suggestions. For 
	financial support, the first author acknowledges the National Science Council, Taiwan; and the third author 
	acknowledges the Australian Research Council, National Science Council, Taiwan, and the Japan Society for 
	the Promotion of Science.
Length: 42 pages 
Creation-Date: 2012-06 
Number: 2012-16 
X-File-Ref: http://america.sim.ucm.es/repec/ucm/ref/doicae1216.txt
File-URL: https://eprints.ucm.es/id/eprint/15690/1/1216.pdf
File-Format: Application/pdf
Handle: RePEc:ucm:doicae:1216