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 analyzed using a sample of nine manufacturing industries in six large OECD countries between 1979 and 1991. The first model is based on traditional productivity analysis, the second model on the endogenous growth theory. The empirical results indicate stronger support for the latter. The results suggest that spillovers from R&D exist within industries, both nationally and internationally, confined to industries that are relatively R&D-intensive. There 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. JEL no. O32, O40.