P. Krugman, “A Model of Innovation, Technology Transfer, and the World Distribution of Income,” Journal of Political Economics, Vol. 87, No. 2, 1966, pp. 253- 266. doi:10.1086/260755
has been cited by the following article:
TITLE: Technology Intensity and the World Distribution of Income
AUTHORS: Chu-Ping Lo, Guang-Jong Fann
KEYWORDS: Innovation; Technology Transfer; Technology Intensity; Relative Wage
JOURNAL NAME: Theoretical Economics Letters, Vol.2 No.2, May 24, 2012
ABSTRACT: This paper presents a simple model of monopolistic competition in a North-South world. The North introduces new goods that the South takes over when the goods become old. The new goods are more technology-intensive than the old goods because innovation requires more efforts than imitation. In the literature, the world distribution of income favors the country that produces a greater range of variety. However, in this model, the South’s catching up in terms of the range of variety is not a threat to the North’s status quo. It is the difference in technology intensity that determines their relative wage.