Knowledge-creating Activity of Emerging Countries and Global Networks

Author Name IINO Takashi (Niigata University) / URABE Sumiko (METI) / SAITO Yukiko (Senior Fellow, RIETI) / YAMAUCHI Isamu (Research Associate, RIETI)
Creation Date/NO. May 2019 19-P-009
Research Project Dynamics of Inter-organizational Network and Firm Lifecycle
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It is supposed that firms apply for patents in destination countries to protect their own technology when they develop their activities globally. This paper examines how global activities such as exporting and foreign direct investment (FDI) correlate with patenting in destination countries and how knowledge-creating activities of firms in destination countries, especially in emerging countries, correlate with global activities by firms in developed countries. We found that the ratio of patents applied for in emerging countries changed depending on the country's stage of development. The ratio of firms from developed countries that file patent applications in emerging countries is high for countries in the early stages of development and that of domestic firms increases as the country developed. Further, by examining the correlation since 2000 between foreign patenting, and exporting and FDI respectively, it was found that the correlation between foreign patenting and exporting decreases and that the correlation with FDI increases. These facts imply that knowledge spillover from developed countries through FDI activates knowledge activities in emerging countries and promotes their development.