a measure of technology that isolates sources of innovation and their contributions to domestic TFP. Within …-industry innovation enhances domestic productivity, and domestic between industry innovations are productivity enhancing. However, foreign …-sourced between-industry innovation has a negative effect on domestic productivity. This highlights the dual aspect of patents as a …

innovation output as measured by patent applications. We first estimate a long-run cointegration relation using recently … analyze the impulse response of new ideas to a shock to R&D or to a shock to innovation by estimating an error correction … mechanism. We find that internationally generated ideas have a very significant impact in helping innovation in a country. As a …

knowledge on technological innovation of a country in the short and in the long run. We find that a country's stock of knowledge … very significant impact on innovation. As a consequence, a positive shock to R&D in the US (the largest world innovator …) has a significant positive effect on the innovation of all other countries. Such a shock produces its largest effect on …