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R&D spillovers through trade in a panel of OECD industries

Bulent Unel ()

Journal of International Trade & Economic Development, 2008, vol. 17, issue 1, pages 105-133

Abstract: This paper investigates the significance of Research and Development (R&D) spillovers through intra- and international trade in intermediate goods for productivity growth in a panel of OECD industries during 1973-1994. In the model, four different sources of R&D are identified: R&D conducted in the particular industry itself, R&D conducted in the same industries in other countries, R&D conducted in other domestic industries, and R&D conducted in other foreign industries. I find that among R&D sources the most important contributions to productivity growth come from the domestic R&D efforts. Here, own R&D is important for both domestic innovation and for the productivity catch-up process. Evidence that international R&D spillovers also have significant effects on productivity growth is found to be less robust. My analysis also shows that human capital affects productivity directly as a factor of production.

Keywords: productivity growth; R&D intensity; R&D spillovers; human capital (search for similar items in EconPapers)
Date: 2008

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Journal of International Trade & Economic Development is edited by Pasquale M. Sgro and Bharat R. Hazari

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