The motivation for this paper comes from the fact that many theoretical models suggest
that technological diffusion among developed countries might differ from technological
diffusion between developed and developing countries.2 Additionally, in its 1998/1999
Development Report, the World Bank emphasizes the importance of openness, stronger
intellectual property rights (IPRs) and foreign direct investment (FDI) as important
channels for acquiring imported knowledge, especially in developing countries (World
Bank, 1998b). The investigation of these issues requires empirical work that includes both
developed and developing economies, since policy recommendations that arise from this
kind of analysis may have very different effects on these two groups of countries