Are there technological gains from the liberalization of exchange?
This article investigates the impact of openness and tariff reductions on the technical inventiveness of selected OECD countries. The results suggest that even these simple forms of trade liberalization may, under certain conditions, favour technical inventiveness or creativity, the most advanced form of technological gain. It is therefore likely that other, more directly relevant kinds of liberalization of exchange, will have some positive effects on less extreme forms of acquisition of technical knowledge. The diversity in outcomes across the range of countries surveyed points to the need to specify the conditions under which these dynamic technological gains can be reaped and serve as a rationale for international trade policy.