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Replication data for: A Trapped-Factors Model of Innovation

Resource Type
  • Bloom, Nicholas
  • Romer, Paul M.
  • Terry, Stephen J.
  • Van Reenen, John
Publication Date
  • Abstract

    We explain a counterintuitive empirical finding: Firms facing more import competition do more innovation. In our model, factors are trapped inside a firm. An increase in import competition encourages a firm to innovate by reducing the opportunity cost of inputs. Without trapped factors, trade liberalization leads to a small permanent increase in the worldwide rate of growth. With trapped factors, firms that face more import competition do relatively more innovation. The extra innovation induced by trapped factors induces a small permanent increase in aggregate output, consumption, and welfare, generalizing the appropriate estimate of the gains from trade.
  • Is supplement to
    DOI: 10.1257/aer.103.3.208 (Text)
  • Bloom, Nicholas, Paul M Romer, Stephen J Terry, and John Van Reenen. “A Trapped-Factors Model of Innovation.” American Economic Review 103, no. 3 (May 2013): 208–13.
    • ID: 10.1257/aer.103.3.208 (DOI)

Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-10-12

Bloom, Nicholas; Romer, Paul M.; Terry, Stephen J.; Van Reenen, John (2013): Replication data for: A Trapped-Factors Model of Innovation. Version: 1. ICPSR - Interuniversity Consortium for Political and Social Research. Dataset.