Knowledge Spillovers in a North-South Analysis of the U.S. Chemical Industry
With the growth in global chemical manufacturing, production has gradually shifted away from high income economies. Such a change in the competitive structure of the industry has implications for the intensity by which firms innovate as well as for knowledge flows between countries. Using U.S. patent data, we analyze how increased chemical production in low- and middle-income countries affects the number of patents granted to U.S. chemical manufacturers, and the extent to which those manufacturers learn from their counterparts in low- and middle-income economies. We find that U.S. chemical patenting has increased as production in low- and middle-income economies has grown, and that U.S. manufacturers are learning more from innovators in those economies over time.
Keywords - Patents, Spillovers, Innovation, Chemical.