(FDI) between 1987 and 1996. In contrast to earlier work, our results suggest that FDI leads to substantial productivity … productivity growth in U.S. firms between 1987 and 1996. In addition, there is some evidence for import-related spillovers, but it …

Investment in research and development (R&D) affects a country's total factor productivity. Recently new theories of … total factor productivity of its trade partners. Following these theoretical developments we estimate the effects of a … country's R&D capital stock and the R&D capital stocks of its trade partners on the country's total factor productivity. We …

basis. A new data set is used which encompasses most of the world's innovative activity at the industry-level between the …-producing country such as the U.S. is associated with a 0.15% lower level of productivity. Second, technological knowledge has become … more global over the sample period. As a determinant of productivity, foreign R&D has significantly gained in importance …

that their functional form of how foreign R&D affects domestic productivity via imports is probably incorrect. We provide …

, all countries will grow at the same rate, with each country's productivity ranking determined by how rapidly it adopts …, productivity, and research. We fit the model to data from the five leading research economies. The parameters indicate how much … innovation at home. For example, about half of U.S. productivity growth derives from foreign technology yet U.S. investors earn …

productivity gains for domestic firms. The size of FDI spillovers is economically important, accounting for about 14% of … productivity growth in U.S. firms between 1987 and 1996. In addition, there is some evidence for imports-related spillovers, but it …

shocks (productivity and quality shocks). Using a calibrated model we provide evidence of substantial welfare gains from a …