International technology diffusion through patents during the second half of the XXth century

Laburpena

This paper analyzes the impact of domestic and foreign technology in explaining Total Factor Productivity (TFP) growth during the second half of the 20th century in some advanced countries (the U.S., France, Germany, the U.K. and Japan). To carry out this objective we use new dataset for the stock of knowledge built on the basis of the Perpetual Inventory Method over patents data for 150 years. To empirically address the aim of this research, we extend Coe and Helpman (1995) empirical specification by including human capital. Our results point out that: first, both domestic and foreign stocks of knowledge are significant in explaining TFP growth; second, the imports of knowledge have a less significant effect than the domestic stock of knowledge for France, Germany and Japan. Further, our results point that human capital plays a superior role in explaining TFP growth in the most advanced countries.