Are international R&D spillovers trade-related?: Analyzing spillovers among randomly matched trade partners

In this paper, I analyze recent findings by Coe and Helpman (1995) on trade-related international R&D spillovers. A Monte-Carlo-based robustness test is proposed which compares the elasticity of domestic productivity with respect to foreign R&D estimated by Coe and Helpman with an elasticity which is based on counterfactual international trade patterns. It is shown that also these, randomly created trade patterns give rise to positive international R&D spillover estimates, which are often larger, and explain more of the variation in productivity across countries than if 'true' bilateral trade patterns are employed, The finding casts doubt on the claim that patterns of international trade are important in driving R&D spillovers. (C) 1998 Published by Elsevier Science B.V. All rights reserved.