Abstract
— This paper estimates the effects of both intranational and international spillovers on production cost, and factor intensities (including R&D intensity) for eleven manufacturing industries in the U.S., and Canada. In addition, social rates of return to R&D capital are calculated, and decomposed into private rates of return, and the extra-returns due to intranational and international spillovers.
International spillovers are usually cost reducing, and increase R&D and physical capital intensities. International spillovers are generally labor and intermediate input intensity reducing. In Canada, international spillover effects are more elastic than domestic spillover elasticities. In the U.S. the same relationship exists, but is not as pronounced.
Social rates of return to R&D capital are substantially above the private rates in both Canada and U.S. In Canada, international spillovers generally account for a greater percentage of the social returns relative to the domestic spillovers. In the U.S. the converse occurs. Canadian social rates are from two and a half to twelve times greater than private returns, while U.S. social returns are from three and a half to ten times greater than the private rates.
I would like to thank Xiaoyi Yan, and Lin Bian for their research assistance. Brian Erard, Steven Globerman, Zvi Griliches, Jacques Mairesse, Ross Preston, Somshwar Rao, and two anonymous referees provided valuable comments and suggestions. Funding for this study was provided by Industry Canada.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Bernstein, J. I., Mohnen, P. (1977). — “International R&D Spillovers Between U.S. and Japanese R&D Intensive Sectors”, forthcoming Journal of International Economics.
Bernstein, J. I. (1992). — “Price Indexes for Canadian Industrial Research and Development Expenditures, Statistics Canada, Services, Science and Technology Division Working Paper No. 92–01.
Bernstein, J. I. (1988). -“Costs of Production, Intra-and Inter-Industry R&D Spillovers: Canadian Evidence”, Canadian Journal of Economics, 21, pp. 324–347.
Bernstein, J. I., Nadiri, M. I. (1988). — “Interindustry R&D Spillovers, Rates of Return, and Production in High-Tech Industries”, American Economic Review, Papers and Proceedings 78, pp. 429–434.
Branstetter, L. (1996). — “Are Knowledge Spillovers International or Intranational in Scope?, Microeconomic Evidence from the U.S. and Japan”. Paper presented at the International Conference on Economics and Econometrics of Innovation, Strasbourg.
Coe, D. T., Helpman, E. (1995). — International R&D Spillovers”, European Economic Review, 39, pp. 859–887.
Denny, M, Bernstein, J., Fuss, M., Nakamura, S., Waverman, L. (1992). — “Productivity in Manufacturing Industries, Canada, Japan, and the United States, 1953–1986, Was the ‘Productivity Slowdown* reversed?”, Canadian Journal of Economics, 25, pp. 584–603.
Diewert, W. E., Wales, T. J. (1988). — “A Normalized Quadratic Semiflexible Function Form”, Journal of Econometrics, 37, pp. 327–342.
Diewert, W. E., Wales T. J. (1987). — “Flexible Functional Forms and Global Curvature Conditions”, Econometrics, 55, pp. 43–68.
Diewert, W. E. (1982). — “Duality Approaches to Microeconomic Theory”, in K. Arrow and M. Intrilligator, Eds., Handbook of Mathematical Economics, Vol. 2; Elsevier Science Publishers, Amsterdam, The Netherlands.
Eaton, J., Kortum, S. (1996). — “Trade in Ideas: Patenting and Productivity in the OECD”, Journal of International Economics, forthcoming.
Griliches, Z. (1991). — “The Search for R&D Spillovers”, Scandinavian Journal of Economics, Supplement, 94, pp. 29–47.
Grossman, G. M., Helpman, E. (1991). — Innovation and Growth in the Global Economy, MIT press, Cambridge, Massachusetts.
Jankowski, J. (1993). — “Do we Need a Price Index for Industrial R&D?”, Research Policy, 22, pp. 195–205.
Jorgenson, D. W., Kuroda M. (1990). — “Productivity and International Competitiveness in Japan and the United States 1960–1985”, in C. Hulten, Ed., Productivity Growth in Japan and the United States, University of Chicago Press, Chicago.
Jorgenson, D. W., Sakuramoto, H., Yoshioka, K., Kuroda, M. (1990). — “Bilateral Models of Production for Japanese and U.S. Industries”, in C. Hulten, Ed., Productivity Growth in Japan and the United States, University of Chicago press, Chicago.
Jorgenson, D. W., Nishimizu, M. (1978). — U.S. and Japanese economic growth 1952–1974, an international comparison, Economic Journal, 88, pp. 707–726.
Keller, W. (1996). — Are International R&D Spillovers Trade-Related? Analysing Spillovers Among Randomly Matched Trade Partners”, SSRI Working Paper, 96–07.
Lichtenberg, F., Van Pottelsberghe de la Potterie, B. (1996). — “International R&D Spillovers: a Re-Examination, NBER Working Paper no. 5668.
Mohnen, P. (1990). — “Relationship between R&D and Productivity Growth in Canada and other Major Industrialized Countries”, University of Quebec in Montreal.
Nadiri, M. I. (1993). — “Innovations and Technological Spillovers”, NBER WorkingPaper no. 4423.
Nadiri, M. I., Prucha, I. (1993). — “Estimation of the Depreciation Rate of Physical and R&D Capital in the U.S. Total Manufacturing Sector”, NBER Working Paper no. 4591.
O’Sullivan, L., Roger, W. (1991). — “An Econometric Investigation of the Interrelationship of R&D Expenditures and Technical Progress”, Commission of the European Communities.
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 2000 Springer Science+Business Media Dordrecht
About this chapter
Cite this chapter
Bernstein, J.I. (2000). Factor Intensities, Rates of Return, and International R&D Spillovers: The Case of Canadian and U.S. Industries. In: The Economics and Econometrics of Innovation. Springer, Boston, MA. https://doi.org/10.1007/978-1-4757-3194-1_21
Download citation
DOI: https://doi.org/10.1007/978-1-4757-3194-1_21
Publisher Name: Springer, Boston, MA
Print ISBN: 978-1-4419-4971-4
Online ISBN: 978-1-4757-3194-1
eBook Packages: Springer Book Archive