INTERNATIONAL R-AND-D SPILLOVERS AND OECD ECONOMIC-GROWTH

This paper quantifies the cross-national spillover effects of governme nt and private investment in research and development (R&D), using a p anel data set of ten OECD countries. The results show that domestic pr ivate research is a significant determinant of both domestic and forei gn productivity growth, and that foreign government research stimulate s domestic private research. These findings ave significant in that th ey provide empirical support for arguments in favor of international e conomic policy coordination, particularly in the area of international science and technology.