Abstract:

The objective of this paper is to study the interconnectedness of trade and innovation considering the new global environment. Trade, technology and innovation are considered to be among the fundamental determinants of economic growth and productivity in the era of globalization. However, although there are considerable studies investigating the link between innovation and exports, especially on a micro level, there are still almost no studies considering the impact that innovation have on multilateral trading system. The contribution of this paper is in researching the implications that innovation present to the multilateral trade under the World Trade Organization.