Two central insights from the Schumpeterian approach to innovation and growth are that the pace of innovation is … empirical literature on trade and innovation. We highlight four key mechanisms through which international trade affects … endogenous innovation and growth: (i) market size; (ii) competition; (iii) comparative advantage; (iv) knowledge spillovers. Each …

-dimensional connections between globalization and innovation. We develop a model that features many of those mechanisms that connect trade and … innovation. It features the joint selection of firms into innovation and international market participation (in our model, we … for innovation …

). We present models in the literature that extend the EK model of trade to innovation, diffusion, and multinational firms …

welfare effects and point to migration and, to a lesser extent, innovation as important adaptation mechanisms. We use the …

costs has no impact at all, in steady-state, on firms' investments in process innovation. We then show that if only a subset … of firms export, a decline in marginal trade costs raises process innovation in exporting firms relative to that of non …-exporting firms. This reallocation of process innovation reinforces existing patterns of comparative advantage, and leads to an …

This paper investigates the effect of export shocks on innovation. On the one hand a positive shock increases market … size and therefore innovation incentives for all firms. On the other hand it increases competition as more firms enter the … export market. This in turn reduces profits and therefore innovation incentives particularly for firms with low productivity …