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International R&D spillovers: A comment


  • Lichtenberg, Frank R.
  • Pottelsberghe de la Potterie, Bruno v.


Coe and Helpman presented evidence consistent with the hypothesis that technology spills over across countries through the channel of trade flows, and provided estimates of the magnitude of these spillovers. We re-examine two features of their econometric model. First, we argue that the weighting scheme they used to compute foreign R+D capital stocks is subject to an 'aggregation bias'. We suggest an alternative weighting scheme that is theoretically much less biased and that yields somewhat better empirical results. Second, we correct an 'indexation bias' and generalise their empirical framework by analysing how the output elasticity of foreign R+D depends on a country's openness to trade. The empirical results confirm that the more open to trade a country is, the more likely it is to benefit from foreign R+D.
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Suggested Citation

  • Lichtenberg, Frank R. & Pottelsberghe de la Potterie, Bruno v., 1998. "International R&D spillovers: A comment," European Economic Review, Elsevier, vol. 42(8), pages 1483-1491, September.
  • Handle: RePEc:eee:eecrev:v:42:y:1998:i:8:p:1483-1491

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    References listed on IDEAS

    1. Keller, W., 1997. "Trade Patterns, Technology Flows, and Productivity Growth," Working papers 9701, Wisconsin Madison - Social Systems.
    2. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth through Creative Destruction," Econometrica, Econometric Society, vol. 60(2), pages 323-351, March.
    3. Coe, David T. & Helpman, Elhanan, 1995. "International R&D spillovers," European Economic Review, Elsevier, vol. 39(5), pages 859-887, May.
    4. Keller, Wolfgang, 2002. "Trade and the Transmission of Technology," Journal of Economic Growth, Springer, vol. 7(1), pages 5-24, March.
    5. Nadiri, M.I., 1993. "Innovations and Technological Spillovers," Working Papers 93-31, C.V. Starr Center for Applied Economics, New York University.
    6. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
    7. M. Ishaq Nadiri, 1993. "Innovations and Technological Spillovers," NBER Working Papers 4423, National Bureau of Economic Research, Inc.
    8. Ben-David, Dan, 1996. "Trade and convergence among countries," Journal of International Economics, Elsevier, vol. 40(3-4), pages 279-298, May.
    9. Zvi Griliches, 1998. "Issues in Assessing the Contribution of Research and Development to Productivity Growth," NBER Chapters,in: R&D and Productivity: The Econometric Evidence, pages 17-45 National Bureau of Economic Research, Inc.
    10. Simon J. Evenett & Wolfgang Keller, 2002. "On Theories Explaining the Success of the Gravity Equation," Journal of Political Economy, University of Chicago Press, vol. 110(2), pages 281-316, April.
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