Global Innovation and Knowledge Diffusion

Nelson Lind and Natalia Ramondo

No 29629, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We develop a Ricardian model of trade in which countries innovate ideas that diffuse across the globe. In this model, the forces of innovation and diffusion combine to shape trade substitution patterns. Innovation makes a country technologically distinct, reducing their substitutability with other countries, while diffusion between countries generates technological similarity and increases head-to-head competition. In the special case of an innovation-only model where countries do not share ideas, productivities are independent across space, and the demand system is CES. As a consequence, departures from CES expenditure reveal diffusion patterns. Our theoretical results provide a mapping between the dynamics of observable trade flows and the dynamics of innovation and knowledge diffusion.

JEL-codes: F1 O3 (search for similar items in EconPapers)
Date: 2022-01
New Economics Papers: this item is included in nep-cse, nep-geo, nep-ino, nep-int, nep-knm, nep-net and nep-tid
Note: EFG ITI
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Published as Nelson Lind & Natalia Ramondo, 2023. "Global Innovation and Knowledge Diffusion," American Economic Review: Insights, vol 5(4), pages 494-510.

Downloads: (external link)
http://www.nber.org/papers/w29629.pdf (application/pdf)

Related works:
Journal Article: Global Innovation and Knowledge Diffusion (2023)
Working Paper: Global Innovation and Knowledge Diffusion (2022)
Working Paper: Global Innovation and Knowledge Diffusion (2019)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:29629

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w29629

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().