This research sheds light on the role of multinational production on the type of innovation performed by firms. We construct matched firm-patent data to measure the scope of innovation, that is the extent to which the output of R&D can be spread across different product lines. We focus on two...

We propose a multi-country endogenous growth model to understand the innovation relocation led by multinational production (MP). The model squares with the fact that countries with large net outward (inward) MP tend to specialize in product (process) innovation. The calibrated model shows that...