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Canadian Manufacturing, U.S. R&D Spillovers, And Communication Infrastructure

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  • Jeffrey I. Bernstein

Abstract

Canada is highly integrated with the U.S. economy. This north-south link, coupled with its east-west dimension, also renders Canadian production dependent on communication infrastructure. We investigate the influence of research and development (R&D) spillovers from U.S. manufacturing and Canadian communication infrastructure on Canadian manufacturing. Canadian production becomes relatively more R&D-intensive from communication spillovers. However, manufacturers substitute knowledge from U.S. spillovers for domestic R&D. U.S. spillovers cause production to become more plant- and equipment-intensive. Spillovers also enhance productivity. Communication infrastructure accounted for 8.5% of the growth, with the major source emanating from U.S. spillovers. They contributed 76% of the gains. © 2000 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology

Suggested Citation

  • Jeffrey I. Bernstein, 2000. "Canadian Manufacturing, U.S. R&D Spillovers, And Communication Infrastructure," The Review of Economics and Statistics, MIT Press, vol. 82(4), pages 608-615, November.
  • Handle: RePEc:tpr:restat:v:82:y:2000:i:4:p:608-615
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    Cited by:

    1. Sung-Bae Mun & M. Ishaq Nadiri, 2002. "Information Technology Externalities: Empirical Evidence from 42 U.S. Industries," NBER Working Papers 9272, National Bureau of Economic Research, Inc.
    2. Fischer, Justina A.V., 2012. "The choice of domestic policies in a globalized economy," MPRA Paper 36990, University Library of Munich, Germany.
    3. Maurizio Ciaschini & Rosita Pretaroli & Claudio Socci, 2009. "A Convenient Multisectoral Policy Control For Ict In The Us Economy," Metroeconomica, Wiley Blackwell, vol. 60(4), pages 660-685, November.
    4. Ana Rincon & Michela VECCHI & Francesco VENTURINI, 2012. "ICT spillovers, absorptive capacity and productivity performance," Quaderni del Dipartimento di Economia, Finanza e Statistica 103/2012, Università di Perugia, Dipartimento Economia.
    5. Fischer, Justina A.V., 2012. "The choice of domestic policies in a globalized economy: Extended Version," MPRA Paper 37816, University Library of Munich, Germany.
    6. Nakamura, Masao, 2005. "Joint venture instability, learning and the relative bargaining power of the parent firms," International Business Review, Elsevier, vol. 14(4), pages 465-493, August.
    7. Venturini, Francesco, 2015. "The modern drivers of productivity," Research Policy, Elsevier, vol. 44(2), pages 357-369.
    8. 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.

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