NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

International R&D Spillovers between Canadian and Japanese Industries

Jeffrey I. Bernstein, Xiaoyi Yan

NBER Working Paper No. 5401 (Also Reprint No. r2141)*
Issued in July 1997
NBER Program(s):   PR

This paper estimates the effects of intranational and international R&D spillovers on the cost and production structure for ten Canadian and Japanese manufacturing industries. Domestic spillovers generate greater effects on average variable cost and factor intensities compared to international spillovers between the two countries. Private and social rates of return to R&D are calculated for each industry in both countries. Social rates of return to R&D are one and one-half to twelve times the private returns. The Canadian social rates of return are generally two to three times higher than the Japanese rates.

*Published: Canadian Journal of Economics, 30, pp.276-294, 1997

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