Spillover effects of innovation: Taiwanese evidence

This article evaluates spillover effects of innovation of Taiwan's industries by using the input–output (IO) analysis framework. On the basis of IO tables for the years 1981, 1986 1991 and 1996, the structure, magnitude and ranking list of the spillover effect of innovation are revealed. Additionally, several findings are also achieved from the empirical results. First, the spillover effect of process innovation is stronger and about more than twice the spillover effect of product innovation in Taiwan. Furthermore, Taiwan's industries manifest a dispersive technological distribution structure and the spillover effect of the process innovation is more dispersive than that of product innovation. Moreover, Taiwanese industries are rather dependent on foreign technologies, particularly in terms of product innovation.