Scientific knowledge is believed to be the wellspring of innovation. Historically, firms have also invested in research … to fuel innovation and growth. In this paper, we document a shift away from scientific research by large corporations … innovation. Large firms appear to value the golden eggs of science (as reflected in patents) but not the golden goose itself (the …

We study the global innovation and diffusion of ideas by introducing trade into the model in Eaton and Kortum (1999 … intensity of innovation within countries over time and diffusion rates across countries. We find significant specialization … across the globe: some countries have high innovation rates, while other countries rely on diffusion. Although innovation is …

Innovation depends on exporting and, in particular, on scale and competition in export markets. We develop a theory … featuring (1) quality-segmented markets, (2) step-by-step innovation that moves firms forward along the quality ladder, and (3 …) escape-the-competition motives for innovation. We derive four predictions about the impact on innovation of scale and …

-skill intensive and are associated with innovation, as well as with technology adoption, management, and diffusion within firms. Using …

reforms also redistribute innovation across industries in closer alignment to its distribution in the U.S., which we take to … increasing value-added growth rates across all industries, and by larger margins in industries with more innovation potential …

two strategies toward that end: imitation and innovation. The theory bears predictions about the evolution of the …