This chapter examines how international flows of technological knowledge affect economic performance across industries and firms across different countries. Motivated by the large share of the world's technology investments made by firms that are active across country borders, we focus on...

This paper investigates Samuelson's (JEP, 2004) argument that technical progress of the trade partner may hurt the home country. We illustrate this prospect in a simple Ricardian model for sitations with outward knowledge spillovers. Within this framework Samuelson's "Act II" effects may occur....