R&D innovation. Our key insight is that a country has incentives to influence foreign innovation efforts across sectors … and over time---giving rise to optimal policies even when the private innovation allocations are (Pareto) efficient. We … same time invoking domestic innovation subsidies during transition. By contrast, optimal policies under exogenous …

of innovation and imitation, we explore how inventive capability affects a firm's R&D investments, and thus whether and … innovation and the division of innovative labor among US manufacturing firms, we find that high capability firms tend to use …

effect on innovation. We develop a simple "trapped factor" model of innovation that is consistent with these empirical …

, 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 …

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 …