The Economist reports on a new paper (PDF) that questions the doom and gloom about American innovation.

Amar Bhid?, of Columbia University’s business school, argues that “most of the value of innovations accrues to their users not their
creators?and stays in the country where the innovation is consumed. So
if China and India do more invention, so much the better for American

Don’t expect it to convince any of the flat worlders, but it helps understand why competition in all sectors of the economy is so important.