This paper examines the extent to which less developed countries benefit from R&D conducted in industrial countries. It finds that R&D spillovers from the North to the South are substantial, with developing countries gaining productivity through imported knowledge and technology. The study uses data from 77 developing countries over the 1971-90 period to estimate the effects of foreign R&D capital stocks, import shares, and secondary school enrollment rates on productivity. The results show that higher foreign R&D capital stocks, greater trade openness, and more educated labor forces lead to higher productivity. The study also finds that the impact of R&D spillovers is larger in countries with more trade with industrial countries that have significant R&D experience. The estimated elasticities suggest that R&D spillovers from the North to the South are significant, with a 100 dollar increase in the domestic R&D capital stock of an industrial country raising the GDP of the 77 developing countries by about 25 dollars. The paper concludes that R&D spillovers from industrial countries to less developed countries are substantial.This paper examines the extent to which less developed countries benefit from R&D conducted in industrial countries. It finds that R&D spillovers from the North to the South are substantial, with developing countries gaining productivity through imported knowledge and technology. The study uses data from 77 developing countries over the 1971-90 period to estimate the effects of foreign R&D capital stocks, import shares, and secondary school enrollment rates on productivity. The results show that higher foreign R&D capital stocks, greater trade openness, and more educated labor forces lead to higher productivity. The study also finds that the impact of R&D spillovers is larger in countries with more trade with industrial countries that have significant R&D experience. The estimated elasticities suggest that R&D spillovers from the North to the South are significant, with a 100 dollar increase in the domestic R&D capital stock of an industrial country raising the GDP of the 77 developing countries by about 25 dollars. The paper concludes that R&D spillovers from industrial countries to less developed countries are substantial.