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This research sheds light on the role of product scope on the innovation activity of multinational multi-product firms. We use patent citation data to break down innovation into two types by measuring the degree to which innovation performed by firms is fundamental and the extent to which the...
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either limited or strong scope for quality differentiation. Using customs data for China during 2002-2006, we empirically … top-quality products on the intensive margin. The product quality ladder also governs firms ’ export dynamics, both in …
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