We examine whether knowledge spillovers from MNCs' local R&D activities benefit domestic firms in the Indian pharmaceutical industry from 1980-1994. In a policy environment that restricted FDI and provided weak intellectual property protection, we find that the only significant R&D spillovers in...

In recent decades, U.S. foreign trade grew much faster than GDP, but there is no consensus why. Notably lacking is an understanding of the role of multinational corporations (MNCs), which mediate over half of world trade. We use Bureau of Economic Analysis data on U.S. MNCs to study the rapid...