Innovation and imitation: substitutes or complements?

Tracy Collins

Applied Economics Letters, 2017, vol. 24, issue 12, 863-867

Abstract: Most of the research on imitation and innovation has focused on developed countries and examined whether imitation promotes or hinders innovation at the macro, industry and intra firm level, and the effect that this has on economic growth. Less research has been conducted about the dynamics that exist between innovation and imitation at the plant-level in developing countries, and the effect that trade policy has on this relationship. This article uses plant-level data from Mexico to analyse the dynamic relationship that exists between innovation and imitation at the microeconomic level. The empirical results suggest that in the context of a developing country, innovation and imitation complement each other and trade policy has no effect on this relationship.

Date: 2017
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DOI: 10.1080/13504851.2016.1237728

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