Technology Spillovers and Its Mechanisms of Diffusion in Emerging Market Economies: Issues and Challenges

Abstract

This article examines the empirical literature on technology spillovers and the mechanisms or channels through which it diffuses in emerging market economies. This article delves into conceptual and measurement challenges concerning technology spillovers. International trade, foreign direct investment, and human capital are the main mechanisms or channels through which technology spillovers and diffusion takes place. In so doing, limitations are also brought out concerning measurement and methodological issues. Finally, this article summarizes the issues and challenges with regards to technology spillovers and its mechanisms of diffusion in emerging market economies and provides pointers for future research.