Discussion paper

DP1467 R&D Spillovers and Global Growth

We examine the growth promoting roles of R&D, international R&D spillovers, and trade in a world econometric model. A country can raise its total factor productivity by investing in R&D. Countries can also boost their productivity by trading with other countries that have large ?stocks of knowledge? from their cumulative R&D activities. We use a special version of MULTIMOD that incorporates R&D spillovers among industrial countries and from industrial countries to developing countries. Our simulations suggest that R&D, R&D spillovers, and trade play important roles in boosting growth in industrial and developing countries.


Helpman, E, D Coe and T Bayoumi (1996), ‘DP1467 R&D Spillovers and Global Growth‘, CEPR Discussion Paper No. 1467. CEPR Press, Paris & London. https://cepr.org/publications/dp1467