UNU-MERIT Working Papers Series
International R&D spillovers and business service innovation
Neil Foster-McGregor, Johannes Pöschl & Robert Stehrer #2014-080A major international transmission channel of productivity increases is
trade in intermediate products and services. This paper analyses
international spillovers at the industry level and for the first time
investigates effects from the services sector in this framework. The
analysis makes use of newly available data on international input-output
linkages between industries. Our results using this novel approach
indicate significant positive productivity effects from innovation in
knowledge intensive, high technology business services and confirm the
productivity effects from international manufacturing spillovers found
in the recent literature.
Keywords: Productivity, Research and Development, Business Services,
Spillovers, Offshoring, Wages, Institutions
JEL Classification: F14, F43, O31, O43
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