OECD Trade Policy Working 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.

Trade and Innovation

Synthesis Report

PDF – 0.46Mb

Authors:

Nobuo Kiriyama¹

Author Affiliations

1: OECD, France

Publication Date

20 Jan 2012

Bibliographic information

No.:: 135

Pages

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