imitate by hiring a worker from a firm that has already innovated. We show that if innovation firms can commit to long … contracts, there is too little innovation and too much imitation in equilibrium. Our model is tractable and allows us to analyze … welfare effects of various policies in the limited commitment case. We find that subsidizing innovation and taxing imitation …

We investigate whether inward FDI, either at the firm or industry level, has any impact on product innovation by … that export, invest in human capital or R&D, or have prior innovation experience. We also find that SOEs with internal R …

into account firm heterogeneity. We find support for the prediction that competition has a negative effect on innovation … are important channels for domestic firm innovation. We do not find support for the inverted U effect of competition on … innovation. There is partial support for the hypothesis that firms in a more pro-business environment invest more in innovation …

We investigate whether inward FDI, either at the firm or industry level, has any impact on product innovation by … that export, invest in human capital or R&D, or have prior innovation experience. We also find that SOEs with internal R …