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 …

This paper contributes to the literature on innovation policies and institutional theory on conditions for effective … yield broader implications for organization and innovation …

two strategies toward that end: imitation and innovation. The theory bears predictions about the evolution of the …