Domestic R&D policy is examined in the context of four successive layers of international integration: (a) trade in intermediate and final goods, (b) trade in technologies, (c) international R&D spillovers and (d) internationally-coordinated R&D policy. Positive domestic R&D spillovers are...

We incorporate trade imbalances into a quantitative model of bilateral trade in manufactures, dividing the world into forty countries. Fitting the model to 2004 data on GDP and bilateral trade we calculate how relative wages, real wages, and welfare would differ in a counterfactual world with...