By constructing a panel dataset from nine OECD countries for the period 1971-1999 and adopting up-to-date panel cointegration estimation methods, the paper shows the robustness of long run positive relationship between inward foreign direct investment and productivities of host countries....

This paper shows that consideration of the role of direct spillovers through information networks is crucial in empirical studies of international R&D spillovers. Data on line penetration rates are used to construct foreign R&D capitals that directly spill over across borders. The conspicuous...