persistent geopolitical conflicts on trade, technological innovation, and economic growth. In conventional trade models the … welfare costs of such conflicts are modest. We build a multi-sector multi-region general equilibrium model with dynamic sector …-specific knowledge diffusion, which magnifies welfare losses of trade conflicts. Idea diffusion is mediated by the input-output structure …

This paper studies the effect of competition on firm innovation by developing a discrete-time endogenous growth model … where multi-product firms do two types of innovation subject to friction in technology spillovers. Firms improve their … existing products through internal innovation while entering others' product markets through external innovation. We introduce …

contributes to the turnover of firms parallel to innovation. The indirect effect appears through innovation and growth: more FDI … means higher innovation, this intensifies firm turnover and increases the unemployment rates in both countries even further … costs and imitation I offer a numerical solution in which I also look at the effect of FDI on welfare and find a positive …

model of endogenous growth featuring heterogeneous firms, financial constraints and a range of innovation policies. A …

In this paper we study the impact of the income distribution on innovation through the demand for quality goods. For … to different consumers. In this equilibrium, a lower relative income of the poor is good for innovation, and a larger … population share of the poor is bad for innovation. …