Sources of knowledge flow between developed and developing nations

What are the primary sources of knowledge flow between developed and developing nations?

We care about understanding the sources of knowledge flow between developed and developing countries because it is crucial for policymaking and strategic partnerships. Knowledge flows, particularly through patenting activities, can catalyze innovation, enhance productivity, and promote sustainable growth in developing nations. As these countries aim to integrate into the global economy and harness foreign technology, knowing where and how knowledge flows occur can inform effective policies and collaborations that bolster their technological capabilities.

We conducted an extensive analysis of patent data from 52 patent offices worldwide, measuring knowledge flow sources through three main channels: R&D collaboration, technology sourcing, and technology transfer. By examining patent applications and ownership transfers, we quantified these knowledge flows and compared the activities between different developed regions, particularly focusing on the USA, Canada, and core Europe, versus developing countries, especially East Asia and China. No specific sample sizes are mentioned beyond the data scope from patent offices.

We found that knowledge flows have increasingly concentrated in East Asia, particularly China, where R&D collaboration and technology sourcing activities have surged. Specifically, R&D collaborations with Asian countries experienced a CAGR of 16.3% from 1990 to 2010, while technology sourcing from these regions showed diminishing reliance on collaborative efforts during economic downturns like the 2008 financial crisis. Additionally, technology transfers indicated that East Asia became the most significant recipient of patent transfers from developed regions, with over 83% of patent transfers to developing nations in 2014 directed toward East Asia.

• Patent data from 52 patent offices, including EPO's Worldwide Patent Statistical Database (PATSTAT 2016), covering filings in developed and developing countries from 1990 to 2010

• Cross-border R&D collaboration is captured by coapplying or coinventing patents between developed and developing nations
• Technology sourcing is measured by patents filed in one country but invented in another, distinguishing between developed and developing countries
• Technology transfer is reflected in ownership changes of patents, informing the overall flow of knowledge