This paper classifies innovation as quality-improving or cost-reducing and estimates a dynamic model incorporating firm export, quality innovation, and cost innovation decisions. Estimation results show that export, quality innovation, and cost innovation increase next-period firm productivity...

This thesis groups three papers examining the role of multi-location firms in the geographic diffusion of knowledge. The first chapter examines whether a firm's headquarters can tap into the knowledge pool in a remote location through FDI. Using U.S. patent data, I show that an R&D headquarters...