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Taking Keller seriously: trade and distance in international R&D spillovers

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  • Andrea Fracasso
  • Giuseppe Vittucci Marzetti

Abstract

In a much cited paper, Wolfgang Keller (Are international R&D spillovers trade-related? Analyzing spillovers among randomly matched trade partners, European Economic Review, 48, 1469-1481, 1998) claims that international R&D spillovers are global and trade-unrelated. In following works, Keller revisits his position and maintains that spillovers are localized because the tacit nature of knowledge favors the direct interaction among agents. Whether the international R&D spillovers are global and trade-related still remains a debated issue in the empirical literature. By adopting two empirical specifications that nest Keller's models, we i) reject the hypothesis that international R&D spillovers are global and ii) show that these latter depend on both geographical distance and international trade.

Suggested Citation

  • Andrea Fracasso & Giuseppe Vittucci Marzetti, 2011. "Taking Keller seriously: trade and distance in international R&D spillovers," Openloc Working Papers 1102, Public policies and local development.
    • Handle: RePEc:trn:utwpol:1102
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    References listed on IDEAS

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    1. Francisco L. Rivera-Batiz & Luis A. Rivera-Batiz, 2018. "Economic Integration and Endogenous Growth," World Scientific Book Chapters, in: Francisco L Rivera-Batiz & Luis A Rivera-Batiz (ed.), International Trade, Capital Flows and Economic Development, chapter 1, pages 3-32, World Scientific Publishing Co. Pte. Ltd..
    2. Andrea Fracasso & Giuseppe Vittucci Marzetti, 2011. "Taking Keller seriously: trade and distance in international R&D spillovers," Department of Economics Working Papers 1106, Department of Economics, University of Trento, Italia.
    3. Lumenga-Neso, Olivier & Olarreaga, Marcelo & Schiff, Maurice, 2005. "On `indirect' trade-related R&D spillovers," European Economic Review, Elsevier, vol. 49(7), pages 1785-1798, October.
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    1. Andrea Fracasso & Giuseppe Vittucci Marzetti, 2011. "Taking Keller seriously: trade and distance in international R&D spillovers," Openloc Working Papers 1102, Public policies and local development.

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    More about this item

    Keywords

    International R&D spillovers; International technology di usion; Localized knowledge spillovers; Total Factor Productivity;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • F01 - International Economics - - General - - - Global Outlook
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • 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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