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

Abstract

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, Vol. , pp. 1-37, 1993. Available at SSRN: https://ssrn.com/abstract=883811

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

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