This paper provides an analysis of Balassa’s ‘revealed comparative advantage’ (RCA). It shows that when using RCA, it should be adjusted such that it becomes symmetric around its neutral value. The proposed adjusted index is called ‘revealed symmetric comparative advantage’ (RSCA). The...

To innovate, firms often need to draw from, and collaborate with, a large number of actors from outside their organization. At the same time, firms need also to be focused on capturing the returns from their innovative ideas. This gives rise to a paradox of openness—the creation of innovations...