Schumpeterian loops in international trade: the evidence of the oecd countries

The paper shows how and why international trade and endogenous technological change are part of a Schumpeterian loop in advanced countries. Imports stir the creative response of firms exposed to global competition and engender the introduction of productivity-enhancing innovations that are contingent upon the knowledge and competence available in each industry. The introduction of new industry-specific technologies augments both productivity and exports. The long-term empirical evidence of the manufacturing industries of 13 OECD countries from 1995 to 2015 fully confirms the Schumpeterian loop.