This course will provide students with a survey of economic models in international trade, applied to innovation-related issues. The course is divided into three sections. In the first one, we look at the role that industry, universities, and the government play in the national innovation system. In the second part, we look at innovation from an international perspective. In particular, we delve into the relationship between globalization and innovation. Finally, we analyze the role of externalities in the knowledge economy and particularly network effects in the diffusion of new technologies. Prereq: ECON 401 and ECON 402.