Template-type: ReDif-Paper 1.0 Author-Name: Foster-McGregor N. Author-Name: Pöschl J. Author-Name: Stehrer R. Author-workplace-name: UNU-MERIT Title: International R&D spillovers and business service innovation Abstract: A major international transmission channel of productivity increases is trade in intermediate products and services. This paper analyses international spillovers at the industry level and for the first time investigates effects from the services sector in this framework. The analysis makes use of newly available data on international input-output linkages between industries. Our results using this novel approach indicate significant positive productivity effects from innovation in knowledge intensive, high technology business services and confirm the productivity effects from international manufacturing spillovers found in the recent literature. Keywords: Empirical Studies of Trade; Economic Growth of Open Economies; Innovation and Invention: Processes and Incentives; Institutions and Growth; Classification-JEL: F14; F43; O31; O43; . Series: Working Papers Creation-Date: 2014 Number: 080 File-URL: http://pub.maastrichtuniversity.nl/b046458d-cc03-410d-b7e7-fb4370ae6c0a File-Format: application/pdf File-Size: 322882 Handle: RePEc:unm:unumer:2014080