When faced with economic stagnation, innovation, product innovation in particular, is often cited as an effective stimulus because it is thought to encourage household consumption and lead to higher demand. Using a secular stagnation model with wealth preference, we examine the effects of...

We begin paper with a descriptive analysis of the growing role of modular innovation across several industries that uncovers regularities of US patent dynamics. Based on this, we develop a set of game-theoretic models for studying the impact of strategic modular innovation investments in...

In this paper, I study the effect of access to markets in high-income countries on firms' product innovation in developing countries. To do so, I exploit a reform that exogenously increased market access for firms in the world's largest developing country, China. Applying an instrumental...

Exploiting a change in policy governing the entry of foreign direct investment (FDI) in 2002, we apply the difference-in-differences model to estimate the effects of FDI on the product scope of domestic Chinese firms. In industries that experienced relaxation in FDI regulations, the average...