We examine optimal industrial and trade policies in a series of dynamic oligopoly games in which a home and a foreign firm compete in R & D and output. Alternative assumptions about the timing of moves and the ability of agents to commit intertemporally are considered. We show that the home...

We study a general equilibrium model of international trade with heterogeneous firms, where countries can strategically invest in technology. The countries' motive is to improve firms' productivity, leading to a competitive advantage in international trade. We are interested in how trade...