OECD Trade Policy Papers

ISSN :
1816-6873 (online)
DOI :
10.1787/18166873
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This series is designed to make available to a wider readership selected trade policy studies prepared for use within the OECD.

NB. No. 1 to No. 139 were released under the previous series title OECD Trade Policy Working Papers.

 

Trade and Innovation

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Authors:
Nobuo Kiriyama1
Author Affiliations
  • 1: OECD, France

Publication Date
20 Jan 2012
Bibliographic information
No.:
135
Pages
41
DOI
10.1787/5k9gwprtbtxn-en

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Innovation is critical to creating new sources of growth. Trade is one of the framework conditions that can strengthen innovation in the business sector, as set out in the OECD Innovation Strategy in 2010. This paper broadly sets out three channels through which trade affects innovation. First, imports and foreign direct investment (FDI) as well as trade in technology serve as channels of technology diffusion. Second, imports, FDI and technology licensing contribute to intensifying competition, which can affect incentives for innovation. Third, exports can affect innovation as it serves as a learning opportunity and gives incentives for innovative activities...
Keywords:
World Trade Organisation, multilateral trade negotiations, NAMA notifications, exports and innovation, international technology diffusion, competition and innovation, trade and innovation
JEL Classification:
  • F13: International Economics / Trade / Trade Policy; International Trade Organizations
  • F23: International Economics / International Factor Movements and International Business / Multinational Firms; International Business
  • L60: Industrial Organization / Industry Studies: Manufacturing / General
  • O24: Economic Development, Technological Change, and Growth / Development Planning and Policy / Trade Policy; Factor Movement Policy; Foreign Exchange Policy