Bahar, DanyHausmann, RicardoHidalgo, C2012-06-052012Bahar, Dany, Ricardo Hausmann, and Cesar Hidalgo. 2012. International Knowledge Diffusion and the Comparative Advantage of Nations. HKS Faculty Research Working Paper Series and CID Working Papers (RWP12-020 and 235), John F. Kennedy School of Government, Harvard University.http://nrs.harvard.edu/urn-3:HUL.InstRepos:8830781In this paper we document that the probability that a product is added to a country’s export basket is, on average, 65% larger if a neighboring country is a successful exporter of that same product. We interpret our result as evidence of international intra-industry knowledge diffusion. Our results are consistent with the overall consensus in the literature on technology spillovers: diffusion is stronger at shorter distances; is weaker for more knowledge-intensive products; and has become faster over time.en-USEconomic GrowthInternational DevelopmentTrade PolicyResearch Paper or Report2012-06-0510.2139/ssrn.2087607