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Product Market Competition and R&D Investment - Evidence From Textual Analysis on Annual Report of China's Listed Firms

Author

Listed:
  • Ziyu Song
  • Shuming Ren

    (Dalian University of Technology, China)

Abstract

We investigate the relationship between product market competition (measured by textual analysis of annual reports) and Research and Development (R&D) investment of China’s listed firms. Empirical results show that competition promotes innovation. Economic policy uncertainty negatively regulates the relationship. In addition, this relationship is affected by the regional heterogeneity of firms.

Suggested Citation

  • Ziyu Song & Shuming Ren, 2021. "Product Market Competition and R&D Investment - Evidence From Textual Analysis on Annual Report of China's Listed Firms," Asian Economics Letters, Asia-Pacific Applied Economics Association, vol. 1(4), pages 1-5.
    • Handle: RePEc:ayb:jrnael:14
    DOI: 2021/06/27
    as

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    References listed on IDEAS

    as
    1. Philippe Aghion & Nick Bloom & Richard Blundell & Rachel Griffith & Peter Howitt, 2005. "Competition and Innovation: an Inverted-U Relationship," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 120(2), pages 701-728.
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    More about this item

    Keywords

    textual analysis; r&d investment; product market competition;
    All these keywords.

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation

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