Trade and Dynamic Efficiency
This paper studies possible impacts of international trade on domestic innovative activity. In the light of Schumpeterian ideas of dynamic efficiency, observed evidence of a positive relationship between static efficiency and trade may be undesirable. The paper examines the question by means of an econometric analysis of a huge data set of individual firms. The findings are: exporting reduces the effect of firm size on process innovations; and import competition, a larger integration in the foreign markets, and external demand support innovative activity. Copyright 1987 by WWZ and Helbing & Lichtenhahn Verlag AG
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Volume (Year): 40 (1987)
Issue (Month): 1 ()
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