R&D Spillovers and Export Performance: Evidence from the OECD Countries.

Recent empirical literature on trade performance has emphasised the role played by domestic R&D in boosting international competitiveness. These models, based on technology-related theories of trade, find empirical support for this hypothesis. In this paper we go further and test whether trading partners' R&D has a positive effect on domestic exports through trade-related international R&D spillovers. We find support for the hypothesis that R&D spillovers increase competitiveness of the trading partners. This has important implications for recent theories of growth that emphasise the role of international trade as the main factor promoting technology diffusion and growth.