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

Andrea Fracasso and Giuseppe Vittucci Marzetti

No 1106, Department of Economics Working Papers from Department of Economics, University of Trento, Italia

Abstract: 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.

Keywords: International R&D spillovers; International technology diffusion; Localized knowledge spillovers; Total Factor Productivity (search for similar items in EconPapers)
JEL-codes: C23 F01 O30 O47 (search for similar items in EconPapers)
Date: 2011
New Economics Papers: this item is included in nep-cse, nep-ino and nep-int
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