International trade is a key determinant of firm profitability and survival, so it is natural to expect it to influence both incentives to innovate and the rate of creative destruction. This column highlights four key mechanisms through which international trade affects endogenous innovation and growth: market size, competition, comparative advantage, and knowledge spillovers.

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28 July 2021

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Vox EU

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https://voxeu.org/article/trade-and-innovation

This Blog is published under the centre's Trade programme, Urban programme.