Authors
Abstract
The process of technology growth through internal research and development (R&D) is slow and expensive in developing countries. Technology has an inevitable role in production and industry; therefore countries will be able to benefit from spillovers effects through bilateral trade. In other words, every country and to be more specific, developing countries can have access to high-tech followed by growth and productivity in less expense through trade with developed countries. In this respect, growth and productivity of any country can be affected by investment in domestic R&D as well as R&D of trade partners. This research is an investigation of the effect of R&D spillovers and innovation of Iran trade partners on the country's economic growth from 2000 to 2009. According to gravity model, the results show that all the included variables - GDP of partners, population, spillovers of domestic and foreign R&D as well as innovation - have significant influence on Iran's economic growth.
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