International R&D Spillovers

40 Pages Posted: 15 Feb 2006

See all articles by David T. Coe

David T. Coe

International Monetary Fund (IMF); National Bureau of Economic Research (NBER)

Multiple version iconThere are 2 versions of this paper

Date Written: November 1993


A model is presented based on recent theories of economic growth that treat commercially oriented innovation efforts as a major engine of technological progress. We study the extent to which a country`s total factor productivity depends on domestic and foreign R&D capital stocks, both proxied by cumulative R&D expenditures. We estimate our equations on a pooled data set of 22 countries during 1970-90 and interpret our results as pooled cointegrating equations. While the beneficial effects on TFP from domestic R&D is well established, we find that foreign R&D is also important. Our estimates suggest that foreign R&D has a stronger effect on domestic productivity the more open an economy is to foreign trade, and that the rate of return on R&D capital stocks is very high, both in terms of domestic output and in terms of international spillovers.

JEL Classification: O31, O40

Suggested Citation

Coe, David T., International R&D Spillovers (November 1993). IMF Working Paper No. 93/84, Available at SSRN:

David T. Coe (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Do you have negative results from your research you’d like to share?

Paper statistics

Abstract Views
PlumX Metrics