Trade-related R&D spillovers and trade flows: evidence from 29 OECD countries

This thesis examines the impact of trade-related R&D spillovers on trade flows in the context of Industry 4.0 (I4.0) across 29 OECD countries between 2010 and 2017. The research focuses on the influence of R&D spillovers embodied in capital goods imports on medium-high technology-intensive (MHT) exports at aggregated and disaggregated levels. Panel gravity models are used to examine the role of technological adoption facilitated by trade-related R&D spillovers. This research fills a research gap situated at the interface between gravity theories and the R&D spillovers literature, specifically estimating the impact of R&D spillovers embodied in capital goods imports using gravity models in the context of I4.0 technologies. The findings of this research indicate that R&D spillovers embodied in capital goods imports have a significant positive impact on total and capital goods exports in the MHT manufacturing sector at the aggregated level. However, at the disaggregated level, the research only found significant results for the impact of R&D spillovers embodied in machinery and equipment goods imports on Robotics goods exports. This research provides novel insights into the role of R&D spillovers embodied in capital goods imports as a source of knowledge transfer and innovation, particularly in the context of I4.0 technologies. Our results indicate that developing countries can benefit from importing capital goods since these generate high R&D spillovers. This helps them catch up with developed countries regarding technological capabilities and facilitates their active participation in global value chains. This research also highlights the importance of capital goods imports for developed countries to remain competitive in a highly competitive and globalized world. The research emphasizes trade-related R&D spillovers' importance for economic growth and industrial competitiveness. It provides a comprehensive analysis of their impact in I4.0 technologies and can guide policymakers on strategies to enhance technological capabilities and competitiveness, especially in developing countries. This research provides the foundation for future studies in this field.