Competition of International Trade, Technology Spillover, and R&D Innovation

By taking the spatial interdependence into account, this paper studies both the competitive effects of international trade and the technology spillover effects on R&D innovation. First, the Schumpeterian model of endogenous growth has been theoretically expanded; then, this paper incorporates the "spatial interdependence" of countries into the research framework by a structured approach; furthermore, using the data of 69 countries from 2000 to 2015, the theoretical results are tested by empirical analysis. It is found that the more advanced a country is, the less it will benefit from the technological spillover from neighboring countries; developing countries ought to gain the benefits of technological externalities through increasing trade openness and international competition.