Estimating international technology spillovers using technology flow matrices

This paper investigates the impact of international R&D spillovers on sectoral growth patterns in OECD countries. It applies panel regression techniques to a time-series cross-section panel. It arrives at the conclusion that knowledge spillovers are an important contributor to economic growth. The estimation results are applied in the form of a 'simulation' of TFP growth per country, splitting (R&D-related) TFP into a component due to domestic R&D and one due to foreign R&D. The results also show that the United States and Germany are the most influential countries in terms of contributions to other countries' TFP growth.