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Are International R&D Spillovers Costly For The US?

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  • Kul Luintel
  • Mosahid Khan

Abstract

Coe and Helpman (1995) and others report positive and equivalent R&D spillovers across G7 countries. We argue that their homogeneity constraint on spillovers across G7 countries is inappropriate, and show that it is rejected by the data. Extending the data set and applying new empirical approaches, we find: (i) R&D spillovers are extremely heterogeneous across G7 countries; (ii) panel estimates do not correspond to country specific estimates and conceal important cross-country differences in knowledge diffusion; and (iii) the US is 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 and this has implications for US productivity.

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Bibliographic Info

Paper provided by Royal Economic Society in its series Royal Economic Society Annual Conference 2004 with number 10.

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Date of creation: 17 Sep 2004
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Handle: RePEc:ecj:ac2004:10

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Cited by:
  1. Carolina Guevara & Corinne Autant-Bernard, 2013. "Technological interdependence between south american countries : a spatial panel data growth model," Working Papers halshs-00803541, HAL.

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