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The Dynamics of International R&D Spillovers

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  • Kul B Luintel

    ()

  • Mosahid Khan

    ()

Abstract

Coe and Helpman (1995) among others report positive and equivalent R&D spillovers across groups of countries. However, the nature of their econometric tests does not address the heterogeneity of knowledge diffusion across countries. We empirically examine these issues in a sample of 10 OECD countries by extending both the time span and the coverage of R&D activities in the data set. We find that the elasticity of total factor productivity with respect to domestic and foreign R&D stocks is extremely heterogeneous across countries and that data cannot be pooled. Thus, panel estimates conceal important cross-country differences. The US appears to be a net loser in terms of international R&D spillovers. Our interpretation is that when competitors ‘catch-up’ technologically, they challenge US market shares and investments worldwide. This has implications for US productivity.

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Bibliographic Info

Paper provided by Economics and Finance Section, School of Social Sciences, Brunel University in its series Economics and Finance Discussion Papers with number 03-27.

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Length: 60 pages
Date of creation: Nov 2003
Date of revision:
Handle: RePEc:bru:bruedp:03-27

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Postal: Brunel University, Uxbridge, Middlesex UB8 3PH, UK

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