What are the effects of knowledge spill overs on the economy?
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Knowledge spillovers play a crucial role in enhancing economic growth and productivity. They have been found to positively impact Total Factor Productivity (TFP) , contributing to domestic productivity and innovation . Countries with better financial systems are more adept at absorbing foreign R&D and reaping the benefits of knowledge spillovers. However, the effectiveness of knowledge spillovers is contingent upon the quality of institutional characteristics in a country. Additionally, knowledge spillovers can help narrow the economic development gap between regions within a country. Overall, fostering knowledge spillovers through policies that promote collaboration, innovation, and institutional quality can lead to significant economic gains and sustainable growth.
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| Papers (4) | Insight |
|---|---|
| Knowledge spillovers positively impact Total Factor Productivity (TFP) and economic growth, especially in countries with well-developed financial systems, leading to mutual reinforcement and potential gains through policy complementarity. | |
01 Mar 2021 | Knowledge spillovers narrow economic development gaps between regions in China but lead to a widening gap between eastern and central regions, emphasizing the need for regional cooperation and talent cultivation. |
| Knowledge spillovers can enhance domestic productivity, but their impact varies based on institutional quality. Countries with strong institutions benefit more, emphasizing the need for policy alignment for economic growth. | |
| Knowledge spillovers drive innovation, fostering long-term economic growth, influencing firm behavior, and guiding public policy. They facilitate the transfer of knowledge among firms and from research to commercial innovation. |
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