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International Trade and Innovation

Author

Listed:
  • Ufuk Akcigit
  • Marc Melitz

Abstract

This chapter was prepared for the Handbook of International Economics (Vol. 5) edited by Gita Gopinath, Elhanan Helpman, and Kenneth Rogoff. We provide a review of the recent literature -- both theoretical and empirical -- analyzing the multi-dimensional connections between globalization and innovation. We develop a model that features many of those mechanisms that connect trade and innovation. It features the joint selection of firms into innovation and international market participation (in our model, we restrict that participation to exports). Our model also highlights how exposure to international markets affects the incentives for innovation.

Suggested Citation

  • Ufuk Akcigit & Marc Melitz, 2021. "International Trade and Innovation," NBER Working Papers 29611, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:29611
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    Cited by:

    1. Andreas Teichgraeber & John Van Reenen, 2022. "A policy toolkit to increase research and innovation in the European Union," POID Working Papers 025, Centre for Economic Performance, LSE.
    2. Melitz, Marc J. & Redding, Stephen J., 2021. "Trade and innovation," LSE Research Online Documents on Economics 113930, London School of Economics and Political Science, LSE Library.
    3. Cui, Chuantao & Li, Leona Shao-Zhi, 2023. "Trade policy uncertainty and new firm entry: Evidence from China," Journal of Development Economics, Elsevier, vol. 163(C).
    4. Anderson, Kym, 2022. "Trade-related food policies in a more volatile climate and trade environment," Food Policy, Elsevier, vol. 109(C).
    5. de Clercq, Michaël & D'Haese, Marijke & Buysse, Jeroen, 2023. "Economic growth and broadband access: The European urban-rural digital divide," Telecommunications Policy, Elsevier, vol. 47(6).

    More about this item

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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