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Cited by 1,305

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A Model of Innovation, Technology Transfer, and the World Distribution of Income

Krugman, Paul·1979·Journal of Political Economy

Abstract

This paper develops a simple general-equilibrium model of product cycle trade. There are two countries, innovating North and noninnovating South. Innovation consists of the development of new products. These can be produced at first only in North, but eventually the technology of production becomes available to South. This technological lag gives rise to trade, with North exporting new products and importing old products. Higher Northern per capita income depends on the quasi rents from the Northern monopoly of new products, so that North must continually innovate not only to maintain its relative position but even to maintain its real income in absolute terms.

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Metadata

Authors
Krugman, P.
Venue
Journal of Political Economy
Published
1979-04
Volume
87
Issue
2
Pages
253-266
ISSN
  • 0022-3808 (ISSN-L)
  • 1537-534X
OpenAlex
W1971711898
Cited by
1,305
References
0
FWCI
10.17
Type
journal article
Language
en
Open access
closed

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CoChat. (2026). Citation check: A Model of Innovation, Technology Transfer, and the World Distribution of Income. https://app.cochat.ai/papers/10.1086/260755
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Krugman, P. (1979). A Model of Innovation, Technology Transfer, and the World Distribution of Income. Journal of Political Economy. https://doi.org/10.1086/260755

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Bibliographic data: Semantic Scholar, OpenAlex, Crossref.

Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).

Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.