#96-DOF-23 "Inter-Industry Technological Spillovers and the Rate of 
            Return on R%D"
           (Bruno van Pottelsberghe de la Potterie, April 1996.)

A WHOLE SENTENCE

ABSTRACT

    This paper provides an homogeneous comparison of the impact of 
inter-industry technological spillovers on productivity growth in 
Japan, the USA, and the UK. The three main results may be summarized 
as follows. (i) The input-output matrix is not a good proxy for the 
technological flows matrix; the latter weighting matrix leads to 
substantially higher estimates of social rates of return on R&D. (ii) 
Among the three countries under consideration, Japan benefits from the
highest private and social rates of return on R&D. (iii) The lower 
private rates of return on R&D in the US and the UK are likely to be 
counterbalanced by relatively stronger inter-industry R&D spillovers 
effects. However, it is not sufficient for an equalization of the 
social rates of return among the three countries.