-wide linkages (complementary skills, knowledge spillovers). It compares growth and welfare when families are stratified into …

We analyze the relationship between legal institutions, innovation and growth. We compare a rigid (law set ex … welfare, amount of innovation and output growth at intermediate stages of technological development — periods when legal …

: imitation of Northern products; imitation and innovation; and finally, innovation only. In particular, the model has the …. First, because subsidies to Southern innovation benefit the North as well, it is beneficial to the North to pay for some of … these subsidies. Second, because the ability of the South to assimilate Northern knowledge and innovate depends on Southern …

. Contrary to transfers and traditional regional policies, it is shown that a public policy that reduces the cost of innovation …

favourable for innovation incentives. This is consistent with empirical evidence, suggesting that countries with a more equal …

comparative advantage of the high-cost countries of North America and Western Europe is increasingly based on knowledge …-driven innovative activity. The spillover of knowledge from the firm or university creating that knowledge to a third-party firm is … essential to innovative activity. Such knowledge spillovers tend to be spatially restricted. Thus, an irony of globalization is …