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Taking Keller seriously: trade and distance in international R&D spillovers

  • Andrea Fracasso


  • Giuseppe Vittucci Marzetti


In a much cited paper, Wolfgang Keller (Are international R&D spillovers trade-related? Analyzing spillovers among randomly matched trade partners, European Economic Review, 48, 1469-1481, 1998) claims that international R&D spillovers are global and trade-unrelated. In following works, Keller revisits his position and maintains that spillovers are localized because the tacit nature of knowledge favors the direct interaction among agents. Whether the international R&D spillovers are global and trade-related still remains a debated issue in the empirical literature. By adopting two empirical specifications that nest Keller’s models, we i) reject the hypothesis that international R&D spillovers are global and ii) show that these latter depend on both geographical distance and international trade.

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Paper provided by Department of Economics, University of Trento, Italia in its series Department of Economics Working Papers with number 1106.

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Date of creation: 2011
Date of revision:
Handle: RePEc:trn:utwpde:1106
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  1. Lumenga-Neso, Olivier & Olarreaga, Marcelo & Schiff, Maurice, 2001. "On 'Indirect' Trade-Related R&D Spillovers," CEPR Discussion Papers 2871, C.E.P.R. Discussion Papers.
  2. Luis A. Rivera-Batiz & Paul M. Romer, 1990. "Economic Integration and Endogenous Growth," NBER Working Papers 3528, National Bureau of Economic Research, Inc.
  3. Andrea Fracasso & Giuseppe Vittucci Marzetti, 2011. "Taking Keller seriously: trade and distance in international R&D spillovers," Openloc Working Papers 1102, Public policies and local development.
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