Working Paper No. 02-13

Phases of Economic Development, Technology Differentiation in R&D Spillovers, and Human Capital
Changsuh Park
October 2002

ABSTRACT

This paper investigates the types of technology in international R&D spillovers and a relationship between technology levels and stage of economic development, which have not been identified in previous empirical studies. It also examines the role of human capital in R&D spillovers. The results of this paper show that medium-high technology is the main source of technology diffusion in developing countries, and high technology is more important in advanced countries. Furthermore, the second important technology in R&D spillovers is different across different stages of economic development: medium-low technology in the low-income group and high technology in the middle-income group. Third, the role of high technology in R&D spillovers becomes larger as per capita income rises. These findings suggest that stage of eocnomic development matters in the type of technology diffusion. Finally, education is also a major factor in R&D spillovers and it plays more important role in relatively higher technology level with higher stage of economic development.

JEL classification: F1, O1, O3, O4.
Keywords: technology differentiation, R&D spillovers, economic development, human capital.

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