Import Penetration and Domestic Process Innovation

Distribution Keiretsu, FDI and Import Penetration in Japan

An independent wholesaler with many different upstream suppliers is likely to be better at market coverage than if it were the subsidiary of just one supplier. But where wholesale efforts are focused on resolving externalities (by establishing and administering a directed marketing channel), efforts at expanding market coverage have greater marginal cost and will be commensurately retrenched, s...

Innovation Responses to Import Competition INCOMPLETE AND PRELIMINARY

How does trade liberalization that raises a country's import competition affect the innovative activity of its firms? We exploit the strong growth of Chinese exports resulting from China's entry into the World Trade Organization in 2001 as a competitive shock to, specifically, Mexican manufacturing firms. Innovation is captured through information on the adoption of detailed firm level producti...

The Employment Maximizing Import Quota Under Domestic Monopoly

Contracting Process Innovation

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The Process of Innovation

SUMMARY The paper argues that innovation processes can be cognitive, organisational and/or economic. They happen in conditions of uncertainty and (in the capitalist system) of competition. Three broad, overlapping sub-processes of innovation are identified: the production of knowledge; the transformation of knowledge into products, systems, processes and services; and the continuous matching of...