International R&D spillovers

David T. Coe, Elhanan Helpman

Research output: Contribution to journalArticlepeer-review

Abstract

A model is presented based on recent theories of economic growth that treat commercially oriented innovation efforts as a major engine of technological progress. We study the extent to which a country's total factor productivity depends not only on domestic R&D capital but also on foreign R&D capital. Our estimates indicate that foreign R&D has beneficial effects on domestic productivity, and that these are stronger the more open an economy is to foreign trade. Moreover, the estimated rates of return on R&D are very high, both in terms of domestic output and international spillovers.

Original languageEnglish
Pages (from-to)859-887
Number of pages29
JournalEuropean Economic Review
Volume39
Issue number5
DOIs
StatePublished - May 1995

Keywords

  • Productivity
  • R&D
  • Spillover

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