A large body of literature estimates private returns to R&D adopting the Griliches knowledge production framework which ignores the potential impact of spillovers on consistent estimation. Using a panel of 12 manufacturing industries across ten OECD economies, we investigate whether ignoring...

Countries differ greatly in R&D spending, and these differences are particularly striking when comparing developed with developing countries. The paper examines the extent to which the benefits of R&D are concentrated in the investing countries. It is argued that significant benefits spill over...