TY  - JOUR
AU  - Keller,Wolfgang
TI  - Trade and Transmission of Technology
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 6113
PY  - 1997
Y2  - July 1997
UR  - http://www.nber.org/papers/w6113
L1  - http://www.nber.org/papers/w6113.pdf
N1  - Author contact info:
Wolfgang Keller
Department of Economics
University of Colorado-Boulder
Boulder, CO 80309-0256
Tel: 303/735 5507
Fax: 303/492 8960
E-Mail: Wolfgang.Keller@colorado.edu
M2  - featured in NBER digest on 1998-02-01
AB  - We present a model of R&D-driven growth which predicts that technology, in the form of product designs and created through R&D investments, is transmitted to other domestic and foreign sectors by being embodied in differentiated intermediate goods. Empirical results are presented employing data from thirteen manufacturing industries in eight OECD countries over the period of 1970 to 1991. We confirm, first, earlier findings that R&D expenditures are positively related to productivity levels, and estimate an elasticity of TFP with respect to own-industry R&D between 7% and 17%.  Second, the receiving industry benefits also from other industries' technology investments, an effect which is at least in part due to trade in embodied technology.  We find that the benefit derived from foreign R&D in the same industry is in the order of 50%-95% of the productivity effect of own R&D.  Third, for domestic interindustry technology flows, the results strongly suggest that trade in goods is not all that matters for technology transmission.  We estimate that domestic, outside-industry R&D is one-fifth to one-half as effective in raising" productivity as own-industry R&D for these industries.
ER  -