AUTHORS
Ronald B. Davies, Guohao Yang
Abstract
Input-Output tables have become the workhorse data structure when considering global supply chains since, by definition, they measure how production in one country sector is linked to that in another via trade in intermediate inputs. What traditional input-output tables miss, however, is the role of knowledge. In this paper, we use the well-knownWorld Input-Output Database and construct a corresponding “Knowledge” input-output dataset based on patenting information from PATSTAT. Thus, for 44 countries over 20 sectors for 15 years, we are able to compare linkages via intermediate goods to those created by patent citations. We illustrate that these two networks share strong similarities in terms of the size of activity and linkages yet important differences — most notably the interaction between Asia and the rest of the world — are found. We then conclude by illustrating the link between patents and a measure of intangible capital that can be constructed from the World Input-Output Database, a relation that is a function of tax haven status. This then suggests that there is a likely direct connection between the data found in the production data and those derived from the patent data.
Publication Date
January 2024
Working papers present the results of ongoing research and make current research results freely available. Due to their preliminary nature, working papers are subject to ongoing peer review. In this context, updated paper versions may be made available at irregular intervals. It may also be useful to contact the author(s) directly about the results before referring to or citing a paper.
