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International R&D Spillovers and Marginal Social Returns on R&D

Author

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  • Kazuo Ogawa
  • Elmer Sterken
  • Ichiro Tokutsu

Abstract

We analyze the impact of international R&D spillovers on recipient countries in terms of social and private returns. We divide the aggregate R&D stock by the business, government and education sectors and examine the impact on Total Factor Productivity. We endogenize the accrual of the R&D stocks by estimating an R&D investment function. We find that the marginal social returns on R&D are much larger than the marginal private returns for R&D-intensive countries. It implies that R&D intensive countries are expected to generate more spillovers at the margin, but the observed R&D stock is smaller than the socially optimal level.

Suggested Citation

  • Kazuo Ogawa & Elmer Sterken & Ichiro Tokutsu, 2016. "International R&D Spillovers and Marginal Social Returns on R&D," CESifo Working Paper Series 6255, CESifo.
    • Handle: RePEc:ces:ceswps:_6255
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    Cited by:

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    More about this item

    Keywords

    R&D; spillovers; total factor productivity; social returns; private returns;
    All these keywords.

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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