Origin Matters: The Differential Impact of Import Competition on Innovation?
dc.contributor.author | Zhou, Yue Maggie | |
dc.contributor | Li, Xiaoyang | |
dc.date.accessioned | 2016-01-13T14:54:03Z | |
dc.date.available | 2016-01-13T14:54:03Z | |
dc.date.issued | 2015-12 | |
dc.identifier | 1299 | en_US |
dc.identifier.uri | https://hdl.handle.net/2027.42/116614 | |
dc.description.abstract | We examine the impact of import competition on firms’ innovation input and output. We conjecture that U.S. firms view import competition from high-wage countries (HWCs) as “neck-and-neck” competition and will respond by intensifying innovation. In contrast, U.S. firms will reduce innovation in response to import competition from low-wage countries (LWCs), because such competition does not always increase the potential benefits from innovation. Our empirical results are supportive. We find that, when confronting HWC import competition, U.S. firms increase R&D spending while intensifying and improving innovation output (file more patents, receive more citations to their patents, and produce more breakthrough patents). Moreover, U.S. firms closest to the technological frontier — largest firms, firms with the largest stocks of knowledge, and most profitable firms — increase and improve their innovation the most in response to HWC competition. These results shed light on the relationship between product market competition and innovation, and point to the origin of import competition as a determent of innovation decisions made by U.S. companies. | en_US |
dc.subject | Import competition | en_US |
dc.subject | R&D | en_US |
dc.subject | Innovation | en_US |
dc.subject | Patent | en_US |
dc.subject.classification | Strategy | en_US |
dc.title | Origin Matters: The Differential Impact of Import Competition on Innovation? | en_US |
dc.type | Working Paper | en_US |
dc.subject.hlbsecondlevel | Business (General) | en_US |
dc.subject.hlbtoplevel | Business | |
dc.contributor.affiliationum | Ross School of Business | en_US |
dc.contributor.affiliationother | Cheung Kong Graduate School of Business | en_US |
dc.contributor.affiliationumcampus | Ann Arbor | |
dc.description.bitstreamurl | http://deepblue.lib.umich.edu/bitstream/2027.42/116614/1/1299_Zhou.pdf | |
dc.description.bitstreamurl | http://deepblue.lib.umich.edu/bitstream/2027.42/116614/4/1299_Zhou_.pdf | |
dc.description.filedescription | Description of 1299_Zhou_.pdf : New Title/Abstract | |
dc.owningcollname | Business, Stephen M. Ross School of - Working Papers Series |
Files in this item
Remediation of Harmful Language
The University of Michigan Library aims to describe library materials in a way that respects the people and communities who create, use, and are represented in our collections. Report harmful or offensive language in catalog records, finding aids, or elsewhere in our collections anonymously through our metadata feedback form. More information at Remediation of Harmful Language.
Accessibility
If you are unable to use this file in its current format, please select the Contact Us link and we can modify it to make it more accessible to you.