Innovation and international trade in technology

Daniel F. Spulber

doi:10.1016/j.jet.2007.06.002

Innovation and international trade in technology

Daniel F. Spulber^*

^*Corresponding author for this work

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Research output: Contribution to journal › Article › peer-review

42 Scopus citations

Abstract

The international market for technology is growing rapidly relative to world GDP. To study the international technology market, I present a model of innovation and international trade in which inventors auction their technology in both domestic and foreign markets. There is monopolistic competition in differentiated products. International trade in technology has number of significant economic effects. Technology trade improves the quality of innovation by increasing the pool of R&D experiments from which the best technology is chosen. Technology trade increases the efficiency of invention while at the same time lowering the total number of inventors relative to the equilibrium without technology trade. Technology trade increases the volume of trade in goods. Technology trade increases product variety at the market equilibrium. Technology trade increases national income in each country and increases total gains from trade.

Original language	English (US)
Pages (from-to)	1-20
Number of pages	20
Journal	Journal of Economic Theory
Volume	138
Issue number	1
DOIs	https://doi.org/10.1016/j.jet.2007.06.002
State	Published - Jan 2008

Keywords

Auctions
Gains from trade
International trade
Invention
Inventors
Licenses
R&D
Technology

ASJC Scopus subject areas

Economics and Econometrics

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10.1016/j.jet.2007.06.002

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title = "Innovation and international trade in technology",

abstract = "The international market for technology is growing rapidly relative to world GDP. To study the international technology market, I present a model of innovation and international trade in which inventors auction their technology in both domestic and foreign markets. There is monopolistic competition in differentiated products. International trade in technology has number of significant economic effects. Technology trade improves the quality of innovation by increasing the pool of R&D experiments from which the best technology is chosen. Technology trade increases the efficiency of invention while at the same time lowering the total number of inventors relative to the equilibrium without technology trade. Technology trade increases the volume of trade in goods. Technology trade increases product variety at the market equilibrium. Technology trade increases national income in each country and increases total gains from trade.",

keywords = "Auctions, Gains from trade, International trade, Invention, Inventors, Licenses, R&D, Technology",

author = "Spulber, {Daniel F.}",

note = "Funding Information: Elinor Hobbs Distinguished Professor of International Business and Professor of Management Strategy. I thank Jim Brander, Jeffrey Church, Jim Dana, Shane Greenstein, Pedro Mendi, Johannes Moenius, Tom Ross, Barbara Spencer and Scott Stern for helpful comments. I thank seminar participants at Northwestern University, University of Calgary, University of British Columbia, and Indiana University for helpful discussions. I am grateful for research support under a grant from the Searle Fund. I thank the associate editor and two referees for suggestions that greatly improved the paper. Copyright: Copyright 2007 Elsevier B.V., All rights reserved.",

year = "2008",

month = jan,

doi = "10.1016/j.jet.2007.06.002",

language = "English (US)",

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N1 - Funding Information: Elinor Hobbs Distinguished Professor of International Business and Professor of Management Strategy. I thank Jim Brander, Jeffrey Church, Jim Dana, Shane Greenstein, Pedro Mendi, Johannes Moenius, Tom Ross, Barbara Spencer and Scott Stern for helpful comments. I thank seminar participants at Northwestern University, University of Calgary, University of British Columbia, and Indiana University for helpful discussions. I am grateful for research support under a grant from the Searle Fund. I thank the associate editor and two referees for suggestions that greatly improved the paper. Copyright: Copyright 2007 Elsevier B.V., All rights reserved.

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N2 - The international market for technology is growing rapidly relative to world GDP. To study the international technology market, I present a model of innovation and international trade in which inventors auction their technology in both domestic and foreign markets. There is monopolistic competition in differentiated products. International trade in technology has number of significant economic effects. Technology trade improves the quality of innovation by increasing the pool of R&D experiments from which the best technology is chosen. Technology trade increases the efficiency of invention while at the same time lowering the total number of inventors relative to the equilibrium without technology trade. Technology trade increases the volume of trade in goods. Technology trade increases product variety at the market equilibrium. Technology trade increases national income in each country and increases total gains from trade.

AB - The international market for technology is growing rapidly relative to world GDP. To study the international technology market, I present a model of innovation and international trade in which inventors auction their technology in both domestic and foreign markets. There is monopolistic competition in differentiated products. International trade in technology has number of significant economic effects. Technology trade improves the quality of innovation by increasing the pool of R&D experiments from which the best technology is chosen. Technology trade increases the efficiency of invention while at the same time lowering the total number of inventors relative to the equilibrium without technology trade. Technology trade increases the volume of trade in goods. Technology trade increases product variety at the market equilibrium. Technology trade increases national income in each country and increases total gains from trade.

KW - Auctions

KW - Gains from trade

KW - International trade

KW - Invention

KW - Inventors

KW - Licenses

KW - R&D

KW - Technology

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Innovation and international trade in technology

Abstract

Keywords

ASJC Scopus subject areas

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