Globalization and Technology Absorption in Europe and Central Asia: The Role of Trade, FDI and Cross-border Knowledge Flows

List of Tables......Page 4
Foreword......Page 8
Acknowledgments......Page 10
Executive Summary......Page 12
Definition of Innovation and Knowledge Absorption......Page 26
Diffusion of Knowledge in Support of Productivity Growth:Literature Review......Page 27
Conceptual Framework: Economic Conditionsand Capacities for Knowledge Absorption......Page 29
Patent Data Provide a View of the Knowledge Absorption Process......Page 32
Implications for Policy......Page 43
3 The Links among Knowledge Absorption, Trade, and FDI......Page 48
Trade and its Benefits......Page 49
Foreign Direct Investment......Page 56
Discussion of Results with Implications for Policy......Page 74
4 How Does FDI via Company Acquisition Impact Technology Absorption? A Case Study of Serbian Enterprises......Page 80
Investment Climate and Sequence of Mergers and Acqusitions, andGreenfield FDI......Page 82
The Background of the Serbian Privatization Program......Page 86
Policy Implications from Case Studies......Page 101
Appendixes......Page 106
A.1. Patent Citations in ECA and Comparator Regions......Page 108
B.1. Definition of Variables Used in Regressions......Page 110
C Questionnaire for Company Interviews......Page 112
D Correlates of ICT and Quality Certification......Page 118
Bibliography......Page 140
1. Correlations of “Composite” Measure of Absorption4 with FirmCharacteristics [+] Positive Correlation, [−] Negative Correlation......Page 20
2. Comparing the Effects of Privatization on FDI versus Domestically-owned Firms......Page 22
2.1. Top 10 Russian Generators of U.S. Patents......Page 40
3.1. Trade Restrictiveness Indices......Page 52
3.2. Logistics Performance Indices, 2007......Page 55
3.3. Regression Results for New Product Introductions as Dependent Variable......Page 64
3.4. Regression Results for Product Upgrades as Dependent Variable......Page 67
3.5. Regression Results for Introduction of New Technology as DependentVariable......Page 69
3.6. Linear Regression Results Based on a “Composite” Measure of Absorption......Page 71
3.7. Regression Results Based on Composite Measure of Absorption,Panel Data......Page 73
4.1. Results of the Serbian Privatization Program......Page 87
4.2. Revenue and Employment Trends Pre- and Post-acquisition......Page 90
4.3. Productivity Trends Pre- and Post-acquisition......Page 92
4.4. Financial Ratios Pre- and Post-acquisition......Page 94
A.2. Hypothesis Tests for Equality of Sample Means......Page 109
D.1. ISO Certification and Web Use across Sectors......Page 122
D.3. ISO Certification and Web Use, Firm Ownership, and Trade Integration......Page 123
D.4. Variable Definitions......Page 127
D.5. Determinants of ISO Certification and WebUse—Cross-Sectional Regressions......Page 129
D.6. Determinants of Technology Adoption across Country Groups......Page 131
D.7. Determinants of ISO Certification and Web-Use—Panel Regressions......Page 133
List of Boxes......Page 6
1. U.S. Patents Granted per Million Population......Page 14
2. U.S. Patent Grants for the ECA 7 vs. India and China......Page 15
3. Indigenous Patents and Coinventions in ECA: 1993–2007......Page 16
4. Trade Restrictiveness Index (TRI), 2005–06......Page 18
5. FDI Inflows as a Percentage of GDP, 2005......Page 19
1.1. Innovation and Absorption as Inputs into Growth and Productivity......Page 30
2.1. ECA Region Patenting in the EPO......Page 34
2.2. ECA Patenting in Europe, by First Inventor Country of Residence......Page 35
2.3. ECA Coinvention by Partner Country......Page 36
2.4. U.S. Patent Grants for the ECA 7, India, and China......Page 37
2.5. The Expanding Role of International Coinvention in the ECA 7......Page 38
2.6. International Coinvention in Russia......Page 39
2.7. National Innovation Systems......Page 46
3.2. Overall Trade Restrictiveness Index-tariff + non-tariff (all goods), 2006......Page 53
3.2: New Foreign Competition: Lowering Profits and Raising Efficiency......Page 60
D.1. ISO Certification and Web Use across ECA Countries......Page 121
3.1: Measuring the Impact of Trade and FDI on Technology Absorption......Page 59
4.1: Methodology: Company Selection, Data Sources, Fieldwork......Page 88
4.2: A Closer Look at Productivity Trends......Page 93
D.1: Identification Strategy......Page 126