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Title: |
Market Access and Leadership in Product
Innovation: A Model of Trade Policy for High-Technology Industries |
| Author: |
Gruber, Harald |
| Author
Affiliation: |
European
Investment Bank |
| Source: |
International Economic Journal, Autumn 1993, v. 7, no. 3, pp. 1-22 |
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Publication Date: |
Autumn 1993 |
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Abstract: |
The model investigates the possible
relationships between market structure, product innovation, and trade
policy. It is shown that the speed of product innovation is most rapid
with a more fragmented market structure and in a free trade regime.
Under free trade the origin of the leader in product innovation is
indeterminate. If a country unilaterally restricts access to its home
market without incurring retaliation, then it increases profits compared
to free trade and it ensures also leadership in product innovation. |
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