Template-type: ReDIF-Paper 1.0
Author-Name: Kesidou, Effie
Author-Email: effie.kesidou@nottingham.ac.uk
Author-Workplace-Name: Nottingham University Business School
Author-Name: Szirmai, Adam
Author-Email: szirmai@merit.unu.edu
Author-Workplace-Name: UNU-MERIT
Title: Local Knowledge Spillovers, Innovation and Economic Performance in Developing 
	 Countries: A discussion of alternative specifications
Abstract: This paper examines the importance of local knowledge spillovers for the  
	 innovative and economic performance of firms in a developing country  
	 context. Theoretical and empirical studies in advanced economies  
	 underline the significance of local knowledge spillovers for innovation.  
	 However, not much is known about whether local knowledge spillovers work  
	 similarly in developing countries. This analysis is based on an original  
	 innovation survey in the software industry in Uruguay. The survey  
	 focuses on the direct identification and measurement of local knowledge  
	 spillovers; pure knowledge spillovers are distinguished from commercial  
	 knowledge transactions. Both knowledge spillovers and knowledge  
	 transactions are measured at the local and at the international level.  
	 The study concludes that local knowledge spillovers play a crucial role  
	 in enhancing the innovative performance of software firms in Uruguay.  
	 However, for the economic performance of the firms, international  
	 knowledge transactions turn out to be more important than local  
	 knowledge spillovers. Local Knowledge Spillovers may be essential for  
	 innovation, but not sufficient for economic success. Firms in developing  
	 countries need to be connected to both the local and the international  
	 economy.
Classification-JEL: L86, O31, O33 
Keywords: local knowledge spillovers, innovation, economic performance, 
	 developing economies
Series: UNU-MERIT Working Papers
Creation-Date: 2008
Number: 2008-033
File-URL: https://unu-merit.nl/publications/wppdf/2008/wp2008-033.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2008033