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International Area Studies Review
[ Article ]
International Area Studies Review - Vol. 29, No. 2, pp.159-182
ISSN: 2233-8659 (Print)
Print publication date 30 Jun 2026
DOI: https://doi.org/10.69473/iasr.2026.29.2.159

The Effect of Knowledge Spillover on Productivity Enhancement in Asia Countries

Byung Min Soon ; Hokyung Bang ; Choongwon Lee*
Professor, Department of Agricultural Economics, Chungnam National University, Daejeon, Republic of Korea
Researcher, Center for International Development, Korea Development Institute, Sejong, Republic of Korea
Researcher, Korea Statistics Promotion Institute, Daejeon, Republic of Korea

Correspondence to: *Email: cnddnjs0393@gmail.com

Abstract

This research examines the impact of knowledge transfer on Total Factor Productivity (TFP) enhancement within APO (Asia Productivity Organization) member countries, focusing on the ICT (Information and Communications Technology) sector. It reveals that both domestic and foreign R&D capital stocks significantly boost productivity, with domestic inputs having a greater effect. The study underscores that larger technological gaps correlate with lower TFP, suggesting that narrowing these gaps through knowledge spillovers or improved human capital can increase productivity. Challenges are institutional barriers, limited absorptive capacity, and financial constraints hinder effective knowledge transfer. The findings advocate for targeted policies that enhance R&D investments, foster human capital development, and strengthen international R&D collaboration, particularly in developing nations, to optimize long-term productivity gains across various high-tech industries.

Keywords:

Absorptive capacity, Asia, Fixed effect model, Human capital, ICT, Knowledge spillover, Productivity

Acknowledgment

This manuscript is based in part on a previously published international report, APO Productivity Outlook 2024 (Asian Productivity Organization, 2024). The present article substantially revises and expands that work, and the relevant portions are used here with appropriate permission and acknowledgment.

AI Acknowledgment

Generative AI or AI-assisted technologies were not used in any way to prepare, write, or complete essential authoring tasks in this manuscript.

Conflict of Interest

The authors declare that there are no conflicts of interest in this research.

Funding

The authors received no financial support for the research, authorship, and/or publication of this article.

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