The importance of R&D spillovers for productivity growth has been well-documented in the literature. While studies in the context of developed countries have extensively focused on sectoral linkages, research on North-South spillovers has been largely confined to the aggregate level. This paper assesses the contribution of international R&D spillovers to manufacturing performance in Indonesia at the sectoral level of manufacturing. Drawing on OECD and Indonesian data sources, we consider two distinct periods: an early period characterised by intense policy regulations followed by a period of liberalisation and reform. Our results indicate a significant contribution of international technology spillovers to the performance of Indonesian manufacturing, especially after liberalisation, with the notable importance of sectoral characteristics and industrial market structure. Keywords: Indonesia, productivity growth, technology spillovers, international trade, market structur
