NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

International R&D Spillovers Between U.S. and Japanese R&D Intensive Sectors

Jeffrey I. Bernstein, Pierre Mohnen

NBER Working Paper No. 4682 (Also Reprint No. r2222)
Issued in March 1994
NBER Program(s):   PR

A great deal of empirical evidence shows that a country's production structure and productivity growth depend on its own R&D capital formation. With the growing role of international trade, foreign investment and international knowledge diffusion, domestic production and productivity also depend on the R&D activities of other countries. The purpose of this paper is to empirically investigate the bilateral link between the U.S. and Japanese economies in terms of how R&D capital formation in one country affects the production structure, physical and R&D capital accumulation, and productivity growth in the other country. We find that production processes become less labor intensive as international R&D spillovers grow. In the short-run, R&D intensity is complementary to the international spillover. This relationship persists in the long-run for the U.S., but the Japanese decrease their own R&D intensity. U.S. R&D capital accounts for 60% of Japanese total factor productivity growth, while Japanese R&D capital contributes 20% to U.S. productivity gains. International spillovers cause social rates of return to be about four times the private returns.

download in pdf format
   (255 K)

email paper

This paper is available as PDF (255 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w4682

Published: Journal of International Economics. 44 (1998) pp. 315-338 citation courtesy of

Users who downloaded this paper also downloaded these:
Coe and Helpman w4444 International R&D Spillovers
Nadiri and Kim w5801 International R&D Spillovers, Trade and Productivity in Major OECD Countries
Hall, Mairesse, and Mohnen w15622 Measuring the Returns to R&D
Keller w8573 International Technology Diffusion
Keller w6065 Are International R&D Spillovers Trade-Related? Analyzing Spillovers Among Randomly Matched Trade Partners
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us