Title: Wake up and smell the ginseng
First published: 2005
Description: "Increasingly, a small number of low-wage countries such as China and India are involved in innovation -- not 'big ideas' innovation, but the constant incremental innovations needed to stay ahead in business.  We provide some evidence of this new phenomenon and develop a model in which there is a transition from old-style product-cycle trade to trade involving incremental innovation in low-wage countries.  We explain why levels of involvement in innovation vary across low-wage countries and even across firms within each low-wage country.  We then draw out implications for the location of production, trade, capital flows, earnings and living standards"--National Bureau of Economic Research web site.
Subjects: Econometric models, Technological innovations
Places: Developing countries
LC classification: HB1