@techreport{NBERw3625,
 title = "Product Demand, Cost of Production, Spillovers, and the Social Rate of  Return to R&D",
 author = "Jeffrey I. Bernstein and M. Ishaq Nadiri",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "3625",
 year = "1991",
 month = "February",
 URL = "http://www.nber.org/papers/w3625",
 abstract = {The purpose of this paper is to develop and estimate a model of production with endogenous technological change. Technological change arises from R&D capital accumulation decisions. These decisions respond to market and government incentives and generate R&D capital spillovers. A spillover network of senders and receivers is estimated. The network shows that each receiving industry is affected by a distinct set of R&D sources and each sending industry affects a unique set of receivers. For the receivers, spillovers generally expand product markets, lower product prices, increase production costs and input demands. For the sources, significant R&D spillovers cause the social rates of return to R&D capital to be substantially above the private returns.},
}