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National and International Spillovers from R&D: Comparing a Neoclassical and an Endogenous Growth Approach

Author

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  • Braconier, Henrik

    (Department of Economics, Lund University)

  • Sjöholm, Fredrik

    (The European Institute of Japanese Studies)

Abstract

Two models where productivity growth is caused by spillovers from R&D are analysed using a sample of nine manufacturing industries in six large OECD-countries between 1979 and 1991. The first model is based on traditional productivity analysis where growth in R&D stocks causes productivity growth. The second model is based on the endogenous growth literature where the level of R&D expenditures is assumed to increase productivity growth. The empirical results indicate stronger support for the latter model. The pattern of spillovers is also investigated. The results suggest that spillovers from R&D exist within industries, both nationally and internationally. There is, however, little evidence of spillovers between industries. The empirical evidence further suggests that intra-industry spillovers are confined to industries that are relatively R&D-intensive. Finally, direct foreign investment seem to facilitate the diffusion of R&D results, but we do not find any effect on growth from R&D embodied in intermediate products.

Suggested Citation

  • Braconier, Henrik & Sjöholm, Fredrik, 1997. "National and International Spillovers from R&D: Comparing a Neoclassical and an Endogenous Growth Approach," SSE/EFI Working Paper Series in Economics and Finance 211, Stockholm School of Economics.
    • Handle: RePEc:hhs:hastef:0211
    Note: Revised version forthcoming in Weltwirtshcaftliches Archiv (1998).
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    More about this item

    Keywords

    R&D; spillovers; growth; trade; DFI;
    All these keywords.

    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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