Innovation across Borders: Firm Dynamics, International Expansion, and Trade Policy
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SeriesResearch Master Defense
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Speaker
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LocationRoeterseilandcampus UvA-REC E5.22
Amsterdam -
Date and time
June 25, 2026
09:30 - 11:30
How does innovation shape firms international expansion and how does trade policy affect this margin? I plan to analyze theoretically how firms adjust their R&D investment behavior when they are close to regime-switching cutoffs: from domestic production to exporting, and from exporting to multinational production. In the model, innovation intensity increases the probability of a positive productivity shock. This means that firms close to a switching threshold may change their R&D investment because a successful innovation can move them into a more profitable regime. The final exercise is to analyze how tariff shocks generate different innovation responses depending on where firms are located in the productivity distribution.