The Neo-Technology-Approach of International Trade Theory explains imports and exports as determined by technological factors. As this approach lacks to compare analytically different kinds of technical change, i.e. product innovations/imitations and process innovations, in a single formal model our paper wants to close this gap. First, we are able to integrate formally the phenomenons of product innovation and imitation. Second, using comparative statics we investigate and compare the respective impact different kinds of technical progress do have on the trade pattern and welfare of trading countries. Here it can be shown that the analytical results are dependent (a) on the kind of progress considered, (b) on the country–advanced or less advanced — which performs such progress, and (c) on whether an endogenous change of specialisation is allowed for or not.