The dominant form is incremental, particularly in developing countries. The rise in incremental innovation in low-wage countries has contributed to increased exports of high-quality and sophisticated manufactured goods (Puga and Trefler 2010). Some sectors are characterized by rapid change and radical innovations, others by smaller, incremental changes. In high-tech sectors, research and development (R&D) plays a central role in innovation, whereas other sectors rely to a greater degree on the adoption of existing knowledge and technology.