The model constructed by Coe and Helpman can quantify spillover effects of knowledge embedded in imported capital goods. But C - H model cannot quantify spillover effects of tacit knowledge which un - embedded in capital goods. Considering tacit knowledge's nature of spatial dependency which is omitted from C - H model, the paper constructs spatial model named Coe - Helpman - Durbin which can quantify both the local spillover effects and spatial spillover effects to neighbors from imported international R&D knowledge. By using a panel data of...