R&D and Productivity: The International Connection
It is apparent from the reported estimates that R&D is an important activity that has a major impact on the performing countries as well as on their trade partners. We may not yet have precise estimates of these impacts, both because of difficulties with available data and because of some unsettled methodological issues. But it is safe to draw a tentative conclusion, namely, that these effects are important and that there exist significant cross-country links that are driven by foreign trade and investments.
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