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The Principle of Concentration expresses the fact that developed countries have a much larger variety of imports and exports than do less developed countries. In other words, exports are more concentrated within certain categories of goods in developing countries than they are in developed countries. Less concentration in the developed countries not only reflects the greater variety of goods demanded by consumers but also attests to the greater innovativeness that results from higher research and development expenditures. Poorer countries understandably are less likely to devote a large percentage of their national income to researching and developing new products.
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