What’s the link between trade and innovation?

What’s the link between trade and innovation?

The cheaper it is for European companies to reach markets overseas, the more they can afford to invest in developing new products at home. That’s important, as greater competition from foreign companies also pushes local firms to innovate in order to keep market share.

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At the same time, cheaper imports also make it easier for EU companies to get the parts they need to build a new design or make their production process more efficient. The result is consumers enjoy a wider range of products at lower prices.

EU trade agreements also defend companies’ intellectual property rights, preventing others from illegally capitalising on the fruits of their rival’s investment.