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National and international spillovers from R&D: Comparing a neoclassical and an endogenous growth approach

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  • Henrik Braconier
  • Fredrik Sjöholm

Abstract

Two models where productivity growth is caused by spillovers from R&D are analysed using a sample of nine manufacturing industries in six large OECD-countries between 1979 and 1991. The first model is based on traditional productivity analysis where growth in R&D stocks causes productivity growth. The second model is based on the endogenous growth literature where the level of R&D expenditures is assumed to increase productivity growth. The empirical results indicate stronger support for the latter model. The pattern of spillovers is also investigated. The results suggest that spillovers from R&D exist within industries, both nationally and internationally. There is, however, little evidence of spillovers between industries. The empirical evidence further suggests that intra-industry spillovers are confined to industries that are relatively R&D-intensive. Finally, direct foreign investment seem to facilitate the diffusion of R&D results, but we do not find any effect on growth from R&D embodied in intermediate products.
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  • Henrik Braconier & Fredrik Sjöholm, 1998. "National and international spillovers from R&D: Comparing a neoclassical and an endogenous growth approach," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 134(4), pages 638-663, December.
  • Handle: RePEc:spr:weltar:v:134:y:1998:i:4:p:638-663 DOI: 10.1007/BF02773291
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    Cited by:

    1. Carmela Martin & Francisco J. Velazquez & Bernard Funck, 2001. "European Integration and Income Convergence : Lessons for Central and Eastern European Countries," World Bank Publications, The World Bank, number 13968.
    2. Giovanni Peri, 2004. "Knowledge Flows and Productivity," Rivista di Politica Economica, SIPI Spa, vol. 94(2), pages 21-59, March-Apr.
    3. Jan Bentzen & Valdemar Smith, 2001. "Spillovers in R&D activities: An empirical analysis of the Nordic countries," International Advances in Economic Research, Springer;International Atlantic Economic Society, pages 199-212.
    4. Liqun Zhou & Liangke Xia, 2010. "How R&D investments influence TFP growth: Evidence from China’s large and medium-sized industrial enterprises," Frontiers of Economics in China, Springer;Higher Education Press, pages 537-558.
    5. Frantzen D., 2002. "R&D Spillovers and Scale Effects," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 222(6), pages 727-749, December.
    6. López-Pueyo, Carmen & Barcenilla-Visús, Sara & Sanaú, Jaime, 2008. "International R&D spillovers and manufacturing productivity: A panel data analysis," Structural Change and Economic Dynamics, Elsevier, vol. 19(2), pages 152-172, June.
    7. Richard Baldwin & Henrik Braconier & Rikard Forslid, 2005. "Multinationals, Endogenous Growth, and Technological Spillovers: Theory and Evidence," Review of International Economics, Wiley Blackwell, vol. 13(5), pages 945-963, November.
    8. Bournakis, Ioannis & Tsoukis, Christopher, 2016. "Government size, institutions, and export performance among OECD economies," Economic Modelling, Elsevier, vol. 53(C), pages 37-47.
    9. Mitze, Timo & Naveed, Amjad & Ahmad, Nisar, 2016. "International, intersectoral, or unobservable? Measuring R&D spillovers under weak and strong cross-sectional dependence," Journal of Macroeconomics, Elsevier, pages 259-272.
    10. Carmela Martin & Francisco J. Velazquez & Jorge Crespo., 2001. "The Role of International Technological Spillovers in the Economic Growth of the OECD Countries ," European Economy Group Working Papers 6, European Economy Group.
    11. Salvador Barrios & Eric Strobl, 2002. "Foreign direct investment and productivity spillovers: Evidence from the Spanish experience," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), pages 459-481.
    12. Peri, Giovanni, 2003. "Knowledge Flows, R&D Spillovers and Innovation," ZEW Discussion Papers 03-40, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    13. Y Wei & X Liu, 2006. "Productivity spillovers from R&D, exports and FDI in China's manufacturing sector," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 37(4), pages 544-557, July.
    14. Hala Abou-Ali & Mohammed Belhaj, 2008. "Cost Benefit Analysis of Desert Locusts Control: A Multicountry Perspective," Working Papers 801, Economic Research Forum, revised 01 Jan 2008.
    15. Jürgen Bitzer & Monika Kerekes, 2005. "Does Foreign Direct Investment Transfer Technology Across Borders? A Reexamination," Macroeconomics 0505004, EconWPA.
    16. Jürgen Bitzer & Monika Kerekes, 2005. "Does Foreign Direct Investment Transfer Technology Across Borders? A Reexamination," Macroeconomics 0505004, EconWPA.

    More about this item

    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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