International spillovers of R&D and marginal social returns

Kazuo Ogawa*, Elmer Sterken, Ichiro Tokutsu

*Corresponding author for this work

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    Abstract

    This study analyzes marginal social and private returns of R&D investment through the impact of international spillovers of R&D stocks. We compare the marginal social with marginal private returns using data of 27 OECD and EU countries from 1995 to 2008. We consider two channels of R&D spillovers: embodied in trade flows and disembodied by bilateral technological proximity. We find that marginal social returns on R&D are much larger than the marginal private returns for R&D-intensive countries, in the embodied spillover channel. We also find that the embodied spillover channel through import flows is more important than the disembodied channel.

    Original languageEnglish
    Pages (from-to)936-954
    Number of pages19
    JournalReview of International Economics
    Volume27
    Issue number3
    DOIs
    Publication statusPublished - Aug-2019

    Keywords

    • FOREIGN DIRECT-INVESTMENT
    • TECHNOLOGY DIFFUSION
    • MULTINATIONAL-ENTERPRISES
    • PRODUCTIVITY GROWTH
    • DOMESTIC FIRMS
    • TRADE
    • KNOWLEDGE

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