This paper investigates the impact of international R&D spillovers on
sectoral growth patterns in OECD countries. It applies panel regressio
n techniques to a time-series cross-section panel. It arrives at the c
onclusion that knowledge spillovers are an important contributor to ec
onomic growth. The estimation results are applied in the form of a 'si
mulation' of TFP growth per country, splitting (R&D-related) TFP into
a component due to domestic R&D and one due to foreign R&D. The result
s also show that the United States and Germany are the most influentia
l countries in terms of contributions to other countries' TFP growth.