novelty requirement and its effect on growth an trade. I consider a world economy with ongoing innovation in two regions. The … capacity for innovation. I introduce the heterogeneity of innovation size together with the obligation, given by Patent Office … of each region, that the innovation size be higher than the patent novelty requirement. This patent characteristic stands …

requirement and its effect on growth and trade. We consider a world economy with ongoing innovation in two regions. The North is … assumed to have a higher wage than the South and a greater capacity for innovation, the South is assumed to have a larger … population than the North. We introduce heterogeneity in innovation size together with the obligation, imposed by Patent Office …

with a continuum of countries. Countries are different in research productivity. Innovation, imitation and the relative …

benchmark model, Northern firms engage in innovation based on the local knowledge stock and learning-by-doing (LBD), and a share … multinationalization rate. We extend the model to permit Southern innovation based on the amount of local knowledge and LBD. Because … Southern firms have higher innovation costs, this generates inefficient specialization in both regions and reduces global …