Accessing external finance for innovation is notoriously difficult. We study the effect of financial constraints on the probability of conducting process innovation, while also considering the role of past innovating experience. Theoretically, we show a firm’s optimal process innovation...

This paper explores the inter-connection between domestic firms' product innovation, export, and the presence of FDI. We first set up a theoretical model, where heterogeneous firms, in a monopolistically competitive market, first make decision on product innovation, and then set prices for their...