RESEARCH-AND-DEVELOPMENT ACTIVITIES AND TRADE SPECIALIZATION IN JAPAN

This study uses panel data on Japanese manufacturing to develop styliz ed facts about the impact of R&D activities on trade. The results indi cate that the impact of R&D is not fully contemporaneous. The paper at tempts to treat R&D as a stock variable, rather than as a flow variabl e as previous research has done. For the end of the sample period, Jap an is found to have a comparative advantage in goods intensive in tota l, privately funded, and applied R&D activities, and a comparative dis advantage in publicly funded and basic R&D intensive goods. (C) 1996 T he Institute for International Economics.