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Trade Induced Technical Bias and Wage Inequalities: a Theory of Defensive Innovation

Mathias Thoenig () and Thierry Verdier ()

DELTA Working Papers from DELTA (Ecole normale supérieure)

Abstract: This paper considers a dynamic North South model of international trade and innovations in which firms can endogenously bias the direction of technological change. We show that, when there is a differential degree of protection of property rights between the two regions, innovating firms face a trade off between delocalization in South and more secure property rights in North.

Keywords: INNOVATIONS; INTERNATIONAL TRADE (search for similar items in EconPapers)
JEL-codes: F13 O32 (search for similar items in EconPapers)
Date: 2000
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Working Paper: Trade Induced Technical Bias And Wage Inequalities: A Theory Of Defensive Innovations (2000) Downloads
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