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International spillovers of R&D and marginal social returns
Author(s) -
Ogawa Kazuo,
Sterken Elmer,
Tokutsu Ichiro
Publication year - 2019
Publication title -
review of international economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.513
H-Index - 58
eISSN - 1467-9396
pISSN - 0965-7576
DOI - 10.1111/roie.12404
Subject(s) - spillover effect , economics , channel (broadcasting) , marginal utility , embodied cognition , investment (military) , monetary economics , microeconomics , artificial intelligence , politics , computer science , law , political science , electrical engineering , engineering
Abstract This study analyzes marginal social and private returns of R&D investment through the impact of international spillovers of R&D stocks. We compare the marginal social with marginal private returns using data of 27 OECD and EU countries from 1995 to 2008. We consider two channels of R&D spillovers: embodied in trade flows and disembodied by bilateral technological proximity. We find that marginal social returns on R&D are much larger than the marginal private returns for R&D‐intensive countries, in the embodied spillover channel. We also find that the embodied spillover channel through import flows is more important than the disembodied channel.