The beneficial effects of innovation for firms' performance and competitiveness are well documented, but it has been … suggested in recent years that innovation regimes differ between advanced and emerging economies. While advanced economies rely … to local firms. We investigate whether FDI spillovers influence different phases of the innovation process (from decision …

This paper studies the consequences of parallel import (PI) on process innovation of firms heterogeneous in their …. The impact of PI on innovation is determined by the degree of heterogeneity between firms and trade costs. Increasing … market, hence increases its innovation efforts. A tariff policy accompanied by opening borders to PI only increases welfare …