National and international spillovers from R&D: Comparing a neoclassical and an endogenous growth approach

Two models where productivity growth is caused by spillovers from R&D are a nalyzed using a sample of nine manufacturing industries in six large OECD c ountries between 1979 and 1991. The first model is based on traditional pro ductivity analysis, the second model on the endogenous growth theory. The e mpirical results indicate stronger support for the latter. The results sugg est that spillovers from R&D exist within industries, both nationally and i nternationally, confined to industries that are relatively R&D-intensive. T here is, however, little evidence of spillovers between industries. Finally , FDIs seem to facilitate the diffusion of R&D results, but the authors do not find any effect on growth from R&D embodied in intermediate products. J EL no. O32, O40.