We examine the extent to which developing countries that do little, if any, research and development themselves benefit from Ramp;D that is performed in the industrial countries. By trading with an industrial country that has a large quot;stock of knowledgequot; from its cumulative Ramp;D...

Investment in research and development (R&D) affects a country's total factor productivity. Recently new theories of economic growth have emphasized this link and have also identified a number of channels through which a country's R&D affects total factor productivity of its trade partners....

We examine the extent to which developing countries that do little, if any research and development themselves benefit from R&D that is performed in the industrial countries. By trading with an industrial country that has large 'stocks of knowledge' from its cumulative R&D activities, a...