Intranational and international knowledge flows: Effects on the formal and informal sectors

Authors

Rajeev K. Goel, Illinois State UniversityFollow
James W. Saunoris, Eastern Michigan UniversityFollow
Xingyuan Zhang, Okayama University, JapanFollow

Document Type

Article

Publication Date

2016

Department

Economics

Abstract

This article studies the effects of international and intranational knowledge flows. Contributions include comparing the effects of knowledge flows on the formal and informal sectors and determining multilateral spatial spillovers of innovation. Results show that formal entrepreneurs respect intranational intellectual property rights, but benefit from international spillovers, especially from patents granted. In contrast, informal entrepreneurs somewhat respect intranational patents granted, but not patent applications and citations. International spillovers to the informal sector are mainly from patents granted. Spillover magnitudes are greater internationally than intranationally, and greater in the informal sector than the formal sector (except for trademarks). (JEL O33, L26, K42)

DOI

10.1111/coep.12112

Citation

Goel, R. K., Saunoris, J. W., & Zhang, X. (2016). Intranational and international knowledge flows: Effects on the formal and informal sectors. Contemporary Economic Policy, 34(2), 297–311. doi:10.1111/coep.12112