Team Production and the Allocation of Creativity across Global and Local Sectors

Team production is introduced into a two-sector Ricardian comparative advantage model in order to investigate its role in shifting high-skilled agents from a sector in which they have comparative advantage to a sector in which they have comparative disadvantage especially focusing on a case where environments of team production in the latter sector are improving. The first result is that team production changes the nature of comparative advantage, possibly leading to reallocation of creativity. The second result is that the likelihood of the shift is limited, and even in a case of success, policy targets (improving the environments of team production) should be selected carefully since those targets are different in the likelihood of shifting creativity, and the most likely case is associated with non-monotonic dynamics of the allocation of creativity.