Innovation depends on exporting and, in particular, on scale and competition in export markets. We develop a theory … featuring (1) quality-segmented markets, (2) step-by-step innovation that moves firms forward along the quality ladder, and (3 …) escape-the-competition motives for innovation. We derive four predictions about the impact on innovation of scale and …

, the forces of innovation and diffusion combine to shape trade substitution patterns. Innovation makes a country … technological similarity and increases head-to-head competition. In the special case of an innovation-only model where countries do … observable trade flows and the dynamics of innovation and knowledge diffusion …

We investigate the impact of reporting regulation on corporate innovation activity. Exploiting thresholds in Europe …

from China impact U.S. innovation through the markets for innovation and existing products. We identify shocks to … innovation competition using the geography of Chinese internet penetration and Chinese import data. Increases in the ability of …

employees to pursue value-enhancing innovative activities. Using patents and citations as proxies for innovation, we identify … that within a country, innovation and economic growth are fostered by stringent laws governing dismissal of employees …, especially in the more innovation-intensive sectors. Firm-level tests within the United States that exploit a discontinuity …