Sources of knowledge flow between developed and developing nations

Abstract

This article provides a long-term view on the sources of knowledge flow between developed and developing nations. It relies on patent data to explore three potential sources: R&D collaboration, technology sourcing, and technology transfer. All three sources provide a very consistent message. First, knowledge flows from East Asia, particularly China, are occurring more frequently. Second, knowledge flows are increasingly concentrated in information and communication technologies. Third, the USA and Canada had traditionally larger patenting activity with Asia than Europe, but the share of activity between Europe and Asia has been increasing in recent years. Larger patenting activity between the USA and Canada and Asia implies that North America is more likely to benefit from the reverse knowledge flows than Europe as China progresses toward becoming a technological leader.