Do Imports Spur Incremental Innovation in the South?
AbstractWe estimate that a one-standard-deviation increase in a firm's import penetration ratio raises its likelihood of having engaged in an incremental innovation by 4.48% using a random-sampled firm survey in China. The estimate is close to those in Gorodnichenko, Svejnar and Terrell (2010). A number of empirical strategies rule out alternative explanations as sufficient drivers of our result. Competitive pressure from imports is shown to be an underlying mechanism through which imports spur incremental innovation. We discuss how the link between imports and innovation in the South differ from that in the North.
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Bibliographic InfoArticle provided by Elsevier in its journal China Economic Review.
Volume (Year): 23 (2012)
Issue (Month): 4 ()
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Web page: http://www.elsevier.com/locate/chieco
Imports; Import Competition; Trade; Innovation; Incremental Innovation;
Find related papers by JEL classification:
- F10 - International Economics - - Trade - - - General
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
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