Knowledge Search and its Effects on the International Diffusion of Knowledge

Wenyue Zhuang, NUS Business School
Kwanghui Lim, Melbourne Business School
Poh-kam Wong, NUS

Abstract

While research has shown that knowledge spillovers are geographically localized, the globalization of R&D is making international knowledge diffusion increasingly important. We propose that the propensity and speed with which technological knowledge diffuses across national borders is influenced by signals and cues during the search for new knowledge. In the context of the global information storage technology, we show that patented knowledge with high technological impact has higher propensity and speed of international diffusion than low impact knowledge. Moreover, an organization’s technological strength increases the likelihood and speed of international citation of its innovations, while internal appropriation efforts reduce diffusion.