product groups but different quality, which is not matched by the predictions of traditional and new trade theory. This paper … analyzes a model of North-South trade and endogenous growth through innovation and imitation that can predict the observed … both the innovation in the North and the imitational lag of the South. Opening to trade increases the growth rate and …

. The paper confirms the insight of the innovation literature, that competition induces firms to specialize and upgrade the …, thereby directing technical change toward diversification. The predictions are tested with data on Italian firms' innovation …

. The paper confirms the insight of the innovation literature, that competition induces firms to specialize and upgrade the …, thereby directing technical change toward diversification. The predictions are tested with data on Italian firms'innovation …

. The paper confirms the insight of the innovation literature, that competition induces firms to specialize and upgrade the …, thereby directing technical change toward diversification. The predictions are tested with data on Italian firms' innovation …