Does Import Competition Induce R&amp;D Reallocation? Evidence from the U.S.

Xu, Rui; Gong, Kaiji

doi:10.5089/9781484326008.001

Cited by 14 publications

(7 citation statements)

References 25 publications

(35 reference statements)

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“…Shu and Steinwender (2019) summarize over 40 papers on trade and competition, arguing that in South America, Asia, and Europe, competition mostly drives increases in innovation (also see Blundell, Griffith, and Van Reenen 1999;Bloom, Draca, and Van Reenen 2016). In North America, the impact of import competition is more mixed; for example, Autor et al (2016) argue that Chinese import competition reduced innovation in US manufacturing, although Xu and Gong (2017) argue these research and development employees displaced from manufacturing were re-employed in services, generating an ambiguous overall impact.…”

Section: Product Market Competition and International Tradementioning

confidence: 99%

A Toolkit of Policies to Promote Innovation

Bloom

Reenen

Williams

2019

Journal of Economic Perspectives

313

150

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Economic theory suggests that market economies are likely to underprovide innovation because of the public good nature of knowledge. Empirical evidence from the United States and other advanced economies supports this idea. We summarize the pros and cons of different policy instruments for promoting innovation and provide a basic “toolkit” describing which policies are most effective according to our reading of the evidence. In the short run, R&D tax credits and direct public funding seem the most productive, but in the longer run, increasing the supply of human capital (for example, relaxing immigration rules or expanding university STEM admissions) is likely more effective.

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Section: Product Market Competition and International Tradementioning

confidence: 99%

A Toolkit of Policies to Promote Innovation

Bloom

Reenen

Williams

2019

Journal of Economic Perspectives

313

150

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“…For firms in Northern America, there is a mixture of findings. Chinese import competition has a negative effect on the R&D spending of U.S. firms, which is driven by those with relatively weak initial performances (Autor et al, 2017;Xu & Gong, 2017). It also has a negative effect on the self-reported product and process innovations of Canadian firms (Kueng et al, 2017).…”

Section: Impact Of Import Competition On Firm Productivity and Innovamentioning

confidence: 99%

The Impact of Trade Liberalization on Firm Productivity and Innovation

Shu

Steinwender

2019

Innovation Policy and the Economy

149

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van Reenen, and participants at the NBER conference on Innovation Policy and the Economy. Leo Ortega Moncada provided excellent research assistance. All errors are our own. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research. NBER working papers are circulated for discussion and comment purposes. They have not been peer-reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications.

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“…America, Asia, and Europe, competition mostly drives increases in innovation (also see Blundell et al 1999;Bloom et al, 2016). In North America, the impact of import competition is more mixed; for example, Autor et al (2017) argue that Chinese import competition reduced innovation in US manufacturing, although Xu and Gong (2017) argue these R&D employees displaced from manufacturing were re-employed in services, generating an ambiguous overall impact.…”

Section: Product Market Competition and International Tradementioning

confidence: 99%