International R&D Spillovers Between U.S. and Japanese R&D Intensive Sectors

Jeffrey Bernstein and Pierre Mohnen

No 4682, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: A great deal of empirical evidence shows that a country's production structure and productivity growth depend on its own R&D capital formation. With the growing role of international trade, foreign investment and international knowledge diffusion, domestic production and productivity also depend on the R&D activities of other countries. The purpose of this paper is to empirically investigate the bilateral link between the U.S. and Japanese economies in terms of how R&D capital formation in one country affects the production structure, physical and R&D capital accumulation, and productivity growth in the other country. We find that production processes become less labor intensive as international R&D spillovers grow. In the short-run, R&D intensity is complementary to the international spillover. This relationship persists in the long-run for the U.S., but the Japanese decrease their own R&D intensity. U.S. R&D capital accounts for 60% of Japanese total factor productivity growth, while Japanese R&D capital contributes 20% to U.S. productivity gains. International spillovers cause social rates of return to be about four times the private returns.

Date: 1994-03
Note: PR
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

Published as Journal of International Economics. 44 (1998) pp. 315-338

Downloads: (external link)
http://www.nber.org/papers/w4682.pdf (application/pdf)

Related works:
Journal Article: International R&D spillovers between U.S. and Japanese R&D intensive sectors (1998)
Working Paper: International R & D Spillovers between U.S. and Japanese R & D intensive sectors (1994)
Working Paper: International R&D Spillovers Between U.S. and Japanese R&D Intensive Sectors (1994)
Working Paper: International R&D Spillovers Between U.S. and Japanese R&D Intensive Sectors
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:4682

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w4682

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().