R & D spillovers and global growth

We examine the growth promoting roles of R&D, international R&D spillovers, and trade in a world econometric model. A country can raise its total fact or productivity by investing in R&D. But countries can also boost their pro ductivity by trading with other countries that have large 'stocks of knowle dge' from their cumulative R&D activities. We use a special version of MULT IMOD that incorporates R&D spillovers among industrial countries and from i ndustrial countries to developing countries. Our simulations suggest that R &D, R&D spillovers, and trade play important roles in boosting growth in in dustrial and developing countries. (C) 1999 Elsevier Science B.V. All right s reserved.