Innovation, mark-ups and the degree of trade openness vary substantially across sectors. This paper builds a multi-sector endogenous growth model to study the in‡uence of asymmetric trade liberalisation and sectoral di¤erences in the degree of product market competition on the e¤ect that trade has on R&D investments at a …rm level. I …nd that di¤erences in the degree of competition generate lar...