This paper investigates the welfare effects on the South of quality-biased technical progress in North's export sector. North exports a quality-differentiated good. while South exports a homogeneous good. We find that if northern technical progress is quality-neutral, the South must gain, but if...

In this article we examine the interaction between firms' product and process innovation decisions and the role patent policy can play in directing technological change toward a socially efficient mix of innovations. Product innovation is a variant on a pioneer's new product; process innovation...