IDEAS home Printed from https://ideas.repec.org/a/eee/ecmode/v156y2026ics0264999326000143.html

Technological peer pressure and inventor mobility: Evidence from China

Author

Listed:
  • Chen, Geng
  • Han, Yikai

Abstract

This paper investigates the relationship between Technological Peer Pressure (TPP) and inventor mobility. Using data on 398,734 inventors from 3078 Chinese listed firms over 2007–2021, we find that TPP significantly increases the likelihood of inventor mobility. This conclusion passes a series of robustness tests and mitigates endogeneity issues via the IV-2SLS and PSM-DID models. We identify three mechanisms driving this effect: heightened corporate earnings pressure, increased innovation bubbles, and diminished collaborative culture. This positive TPP-mobility link is weaker for inventors with more co-inventors or star inventors, for firms with more R&D alliances or less myopic management. Overall, our results highlight TPP's critical role in shaping inventor mobility, offering insights for firms to respond to technological competition in the product market.

Suggested Citation

  • Chen, Geng & Han, Yikai, 2026. "Technological peer pressure and inventor mobility: Evidence from China," Economic Modelling, Elsevier, vol. 156(C).
  • Handle: RePEc:eee:ecmode:v:156:y:2026:i:c:s0264999326000143
    DOI: 10.1016/j.econmod.2026.107485
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0264999326000143
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.econmod.2026.107485?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    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.
    2. Wang, Qun & Zhou, Yan & Zhao, Xiangfang & Zeng, Yongliang, 2025. "Collaborative culture, product quality, and firm performance," Economics Letters, Elsevier, vol. 246(C).
    3. Cheng, Sirui & Hua, Xiuping & Wang, Qingfeng, 2023. "Corporate culture and firm resilience in China: Evidence from the Sino-US trade war," Pacific-Basin Finance Journal, Elsevier, vol. 79(C).
    4. Tong, Di & Lee, Jeongsik “Jay”, 2024. "Knowledge catalysts: The role of generalist incumbents in post-hiring knowledge integration," Research Policy, Elsevier, vol. 53(1).
    5. Bruno Cassiman & Reinhilde Veugelers, 2002. "R&D Cooperation and Spillovers: Some Empirical Evidence from Belgium," American Economic Review, American Economic Association, vol. 92(4), pages 1169-1184, September.
    6. Yuzhe Miao & Robert M. Salomon & Jaeyong Song, 2021. "Learning from Technologically Successful Peers: The Convergence of Asian Laggards to the Technology Frontier," Organization Science, INFORMS, vol. 32(1), pages 210-232, January.
    7. Tania Babina & Alex Xi He & Sabrina T Howell & Elisabeth Ruth Perlman & Joseph Staudt, 2023. "Cutting the Innovation Engine: How Federal Funding Shocks Affect University Patenting, Entrepreneurship, and Publications," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 138(2), pages 895-954.
    8. Jaffe, Adam B, 1986. "Technological Opportunity and Spillovers of R&D: Evidence from Firms' Patents, Profits, and Market Value," American Economic Review, American Economic Association, vol. 76(5), pages 984-1001, December.
    9. Guanchun Liu & Yuanyuan Liu & Jinyu Yang & Yanren Zhang, 2024. "Labor Contract Law and inventor mobility: evidence from China," Journal of Population Economics, Springer;European Society for Population Economics, vol. 37(1), pages 1-36, March.
    10. Neus Palomeras & Eduardo Melero, 2010. "Markets for Inventors: Learning-by-Hiring as a Driver of Mobility," Management Science, INFORMS, vol. 56(5), pages 881-895, May.
    11. Im, Hyun Joong & Park, Young Joon & Shon, Janghoon, 2015. "Product market competition and the value of innovation: Evidence from US patent data," Economics Letters, Elsevier, vol. 137(C), pages 78-82.
    12. Kim, Bongsun & Kim, Eonsoo & Miller, Douglas J. & Mahoney, Joseph T., 2016. "The impact of the timing of patents on innovation performance," Research Policy, Elsevier, vol. 45(4), pages 914-928.
    13. Wang, Daoping & Li, Kangle & Shen, Xinyan, 2025. "Fear of war: Geopolitical risks and the potential impact on local government bonds, stock market and FDI in China," Economics Letters, Elsevier, vol. 251(C).
    14. Zeng, Jing & Ling, Wen & Hua, Min & Chan, Kam C., 2024. "Impact of an increase in tax deductibility of R&D expenditure on firms' ESG: Evidence from China," International Review of Financial Analysis, Elsevier, vol. 96(PA).
    15. Fee, C Edward & Hadlock, Charles J, 2000. "Management Turnover and Product Market Competition: Empirical Evidence from the U.S. Newspaper Industry," The Journal of Business, University of Chicago Press, vol. 73(2), pages 205-243, April.
    16. Xu, Wanli & Peng, Zihao & Tang, Yue & Xu, Mingli, 2026. "Does a collaborative culture promote firm growth? Evidence from China," International Review of Financial Analysis, Elsevier, vol. 109(C).
    17. Devrim Göktepe-Hulten & Prashanth Mahagaonkar, 2010. "Inventing and patenting activities of scientists: in the expectation of money or reputation?," The Journal of Technology Transfer, Springer, vol. 35(4), pages 401-423, August.
    18. Wu, Jie, 2012. "Technological collaboration in product innovation: The role of market competition and sectoral technological intensity," Research Policy, Elsevier, vol. 41(2), pages 489-496.
    19. Choi, Jay Pil, 1993. "Cooperative R&D with product market competition," International Journal of Industrial Organization, Elsevier, vol. 11(4), pages 553-571.
    20. Ann‐Christine Schulz & Margarethe F. Wiersema, 2018. "The impact of earnings expectations on corporate downsizing," Strategic Management Journal, Wiley Blackwell, vol. 39(10), pages 2691-2702, October.
    21. Kai Li & Feng Mai & Rui Shen & Xinyan Yan, 2021. "Measuring Corporate Culture Using Machine Learning," NBER Chapters, in: Big Data: Long-Term Implications for Financial Markets and Firms, pages 3265-3315, National Bureau of Economic Research, Inc.
    22. Evgeniou, Theodoros & Peress, Joel & Vermaelen, Theo & Yue, Ling, 2022. "Network Centrality and Managerial Market-Timing Ability," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 57(2), pages 704-760, March.
    23. Nicholas Bloom & Mark Schankerman & John Van Reenen, 2013. "Identifying Technology Spillovers and Product Market Rivalry," Econometrica, Econometric Society, vol. 81(4), pages 1347-1393, July.
    24. Martin Ganco, 2013. "Cutting the Gordian knot: The effect of knowledge complexity on employee mobility and entrepreneurship," Strategic Management Journal, Wiley Blackwell, vol. 34(6), pages 666-686, June.
    25. D. Daniel Keum, 2021. "Innovation, short‐termism, and the cost of strong corporate governance," Strategic Management Journal, Wiley Blackwell, vol. 42(1), pages 3-29, January.
    26. Philippe Aghion & Xavier Jaravel, 2015. "Knowledge Spillovers, Innovation and Growth," Economic Journal, Royal Economic Society, vol. 0(583), pages 533-573, March.
    27. Xiaolu Xu & Leo L. Yang & Joseph H. Zhang, 2022. "How do auditors respond to client firms’ technological peer pressure? Evidence from going‐concern opinions," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 49(9-10), pages 1553-1580, October.
    28. Evangelia Chalioti, 2015. "Incentive contracts under product market competition and R&D spillovers," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 58(2), pages 305-328, February.
    29. Lynn Wu & Lorin Hitt & Bowen Lou, 2020. "Data Analytics, Innovation, and Firm Productivity," Management Science, INFORMS, vol. 66(5), pages 2017-2039, May.
    30. J. Robert Baum & Stefan Wally, 2003. "Strategic decision speed and firm performance," Strategic Management Journal, Wiley Blackwell, vol. 24(11), pages 1107-1129, November.
    31. Daniel Bradley & Incheol Kim & Xuan Tian, 2017. "Do Unions Affect Innovation?," Management Science, INFORMS, vol. 63(7), pages 2251-2271, July.
    32. Jasjit Singh, 2005. "Collaborative Networks as Determinants of Knowledge Diffusion Patterns," Management Science, INFORMS, vol. 51(5), pages 756-770, May.
    33. Liu, Zheng & Shen, Hongtao & Welker, Michael & Zhang, Ning & Zhao, Yang, 2021. "Gone with the wind: An externality of earnings pressure," Journal of Accounting and Economics, Elsevier, vol. 72(1).
    34. Beatriz Garcia Osma & Steven Young, 2009. "R&D Expenditure and Earnings Targets," European Accounting Review, Taylor & Francis Journals, vol. 18(1), pages 7-32.
    35. Wang, Yanuo & Xie, Zhengying & Geng, Haipeng & Croce, Jorry, 2024. "The impact of CEO hedging on corporate ESG performance: Evidence from the United States," Finance Research Letters, Elsevier, vol. 69(PA).
    36. Stefano Breschi & Francesco Lissoni, 2009. "Mobility of skilled workers and co-invention networks: an anatomy of localized knowledge flows," Journal of Economic Geography, Oxford University Press, vol. 9(4), pages 439-468, July.
    37. Caskey, Judson & Ozel, N. Bugra, 2017. "Earnings expectations and employee safety," Journal of Accounting and Economics, Elsevier, vol. 63(1), pages 121-141.
    38. Hoisl, Karin, 2007. "Tracing mobile inventors--The causality between inventor mobility and inventor productivity," Research Policy, Elsevier, vol. 36(5), pages 619-636, June.
    39. Kai Li & Feng Mai & Rui Shen & Xinyan Yan, 2021. "Measuring Corporate Culture Using Machine Learning [Machine learning methods that economists should know about]," The Review of Financial Studies, Society for Financial Studies, vol. 34(7), pages 3265-3315.
    40. Ruijie Sun & Feng Liu & Yinan Li & Rongping Wang & Jing Luo, 2024. "Machine Learning for Predicting Corporate Violations: How Do CEO Characteristics Matter?," Journal of Business Ethics, Springer, vol. 195(1), pages 151-166, November.
    41. Sebastian Kube & Michel André Maréchal & Clemens Puppe, 2013. "Do Wage Cuts Damage Work Morale? Evidence From A Natural Field Experiment," Journal of the European Economic Association, European Economic Association, vol. 11(4), pages 853-870, August.
    42. Scoresby, Richard B. & Park, Haemin, 2021. "The joint effects of individual and firm level knowledge attributes on inventor mobility to entrepreneurial and established firms," Journal of Business Research, Elsevier, vol. 133(C), pages 218-230.
    43. DeFond, Mark L. & Park, Chul W., 1999. "The effect of competition on CEO turnover1," Journal of Accounting and Economics, Elsevier, vol. 27(1), pages 35-56, February.
    44. Blake A. Allan & Cassondra Batz-Barbarich & Haley M. Sterling & Louis Tay, 2019. "Outcomes of Meaningful Work: A Meta‐Analysis," Journal of Management Studies, Wiley Blackwell, vol. 56(3), pages 500-528, May.
    45. Wang, Shuangshi & Yan, Cheng & Zhao, Yuqian, 2024. "Technological peer pressure and corporate sustainability," Energy Economics, Elsevier, vol. 130(C).
    46. Yu, Yang & Xie, Bingyuan & Dou, Zhuo & Fu, Qilong, 2024. "Managerial myopia and corporate innovation strategy," Finance Research Letters, Elsevier, vol. 67(PA).
    47. Matt Marx & Deborah Strumsky & Lee Fleming, 2009. "Mobility, Skills, and the Michigan Non-Compete Experiment," Management Science, INFORMS, vol. 55(6), pages 875-889, June.
    48. Martin Ganco & Rosemarie H. Ziedonis & Rajshree Agarwal, 2015. "More stars stay, but the brightest ones still leave: Job hopping in the shadow of patent enforcement," Strategic Management Journal, Wiley Blackwell, vol. 36(5), pages 659-685, May.
    49. Eduardo Melero & Neus Palomeras & David Wehrheim, 2020. "The Effect of Patent Protection on Inventor Mobility," Management Science, INFORMS, vol. 66(12), pages 5485-5504, December.
    50. Geng, Yuan & Chen, Jinyu & Liu, Ran, 2024. "ESG rating disagreement and corporate green innovation bubbles: Evidence from Chinese A-share listed firms," International Review of Financial Analysis, Elsevier, vol. 95(PB).
    51. Johan Hombert & Adrien Matray, 2017. "The Real Effects of Lending Relationships on Innovative Firms and Inventor Mobility," The Review of Financial Studies, Society for Financial Studies, vol. 30(7), pages 2413-2445.
    52. Melissa A. Schilling, 2015. "Technology Shocks, Technological Collaboration, and Innovation Outcomes," Organization Science, INFORMS, vol. 26(3), pages 668-686, June.
    53. Jürgen Mihm, 2010. "Incentives in New Product Development Projects and the Role of Target Costing," Management Science, INFORMS, vol. 56(8), pages 1324-1344, August.
    54. Chen, Geng & Han, Yikai, 2025. "Environmental tax reform and green inventors: Evidence from Chinese listed companies," Finance Research Letters, Elsevier, vol. 76(C).
    55. Chila, Vilma & Devarakonda, Shivaram, 2024. "The effects of firm-specific incentives (stock options) on mobility and employee entrepreneurship," Journal of Business Venturing, Elsevier, vol. 39(3).
    56. Xiaofeng Liu & Zhi Wang & Shichi Ren, 2024. "Investor–Firm Interactions and Corporate ESG Performance: Evidence from China," Sustainability, MDPI, vol. 16(24), pages 1-33, December.
    57. Kwon, Shin Hyoung & Kim, Joongseo & Yim, Hyunsoon (Sean), 2023. "Looking far or close: The explanatory role of myopic management in the relationship between CEO-TMT power disparity and corporate social responsibility," Journal of Business Research, Elsevier, vol. 167(C).
    58. Zhao, Shukuan & Xu, Baoda & Zhang, Weiyong, 2018. "Government R&D subsidy policy in China: An empirical examination of effect, priority, and specifics," Technological Forecasting and Social Change, Elsevier, vol. 135(C), pages 75-82.
    59. Du, Qianqian & Shen, Rui, 2018. "Peer performance and earnings management," Journal of Banking & Finance, Elsevier, vol. 89(C), pages 125-137.
    60. Di Lorenzo, Francesco & Almeida, Paul, 2017. "The role of relative performance in inter-firm mobility of inventors," Research Policy, Elsevier, vol. 46(6), pages 1162-1174.
    61. Dong, Feng & Li, Zhicheng & Huang, Zihuang & Liu, Yu, 2024. "Extreme weather, policy uncertainty, and risk spillovers between energy, financial, and carbon markets," Energy Economics, Elsevier, vol. 137(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Varshney, Mayank, 2023. "Learning-by-hiring: How do rival firms learn from focal firm's hiring," Research Policy, Elsevier, vol. 52(2).
    2. Guanchun Liu & Yuanyuan Liu & Jinyu Yang & Yanren Zhang, 2024. "Labor Contract Law and inventor mobility: evidence from China," Journal of Population Economics, Springer;European Society for Population Economics, vol. 37(1), pages 1-36, March.
    3. Simeth, Markus & Mohammadi, Ali, 2022. "Losing talent by partnering up? The impact of R&D collaboration on employee mobility," Research Policy, Elsevier, vol. 51(7).
    4. Asmaa Elsayed Belal, 2023. "Antecedents of employee mobility: a systematic review and agenda for future research," Management Review Quarterly, Springer, vol. 73(4), pages 1795-1823, December.
    5. Varshney, Mayank & Jain, Amit, 2023. "Technology acquisition following inventor exit in the biopharmaceutical industry," Technovation, Elsevier, vol. 126(C).
    6. Wagner, Stefan & Goossen, Martin C., 2018. "Knowing me, knowing you: inventor mobility and the formation of technology-oriented alliances," IRTG 1792 Discussion Papers 2018-007, Humboldt University of Berlin, International Research Training Group 1792 "High Dimensional Nonstationary Time Series".
    7. Shu-Hao Chang, 2024. "International Technology Market Hotspots and Development Trends from the Perspective of Inventor Mobility," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 2361-2382, March.
    8. Burak Dindaroglu, 2010. "Intra-Industry Knowledge Spillovers and Scientific Labor Mobility," Discussion Papers 10-01, University at Albany, SUNY, Department of Economics.
    9. Ji Youn (Rose) Kim & H. Kevin Steensma, 2017. "Employee mobility, spin-outs, and knowledge spill-in: How incumbent firms can learn from new ventures," Strategic Management Journal, Wiley Blackwell, vol. 38(8), pages 1626-1645, August.
    10. Eduardo Melero & Neus Palomeras & David Wehrheim, 2020. "The Effect of Patent Protection on Inventor Mobility," Management Science, INFORMS, vol. 66(12), pages 5485-5504, December.
    11. Simeth, Markus & Mohammadi, Ali, 2017. "The impact of open innovation on employee mobility and entrepreneurship," Working Paper Series in Economics and Institutions of Innovation 449, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    12. Ashish Arora & Michelle Gittelman & Sarah Kaplan & John Lynch & Will Mitchell & Nicolaj Siggelkow & Chunmian Ge & Ke-Wei Huang & Ivan P. L. Png, 2016. "Engineer/scientist careers: Patents, online profiles, and misclassification bias," Strategic Management Journal, Wiley Blackwell, vol. 37(1), pages 232-253, January.
    13. Kraft, Kornelius & Rammer, Christian, 2023. "Intended and unintended knowledge spillovers in innovation," ZEW Discussion Papers 23-015, ZEW - Leibniz Centre for European Economic Research.
    14. Chen, Chong & Huang, Qianqian & Shi, Chang & Yuan, Tao, 2024. "Opioid epidemic and corporate innovation," Journal of Corporate Finance, Elsevier, vol. 86(C).
    15. Lyungmae Choi & Lucile Faurel & Stephen Hillegeist, 2025. "Do Proprietary Costs Deter Insider Trading?," Management Science, INFORMS, vol. 71(4), pages 3185-3215, April.
    16. Jiang, Hui & Liu, Yu & Dong, Junqi, 2025. "Learning from winning firms: Government innovation procurement and peer innovation efficiency," China Economic Review, Elsevier, vol. 94(PB).
    17. Chang, Sea-Jin & Matsumoto, Yoichi, 2025. "Internal redeployment versus external recruitment of inventors," Research Policy, Elsevier, vol. 54(6).
    18. Alfonso Gambardella & Martin Ganco & Florence Honoré, 2015. "Using What You Know: Patented Knowledge in Incumbent Firms and Employee Entrepreneurship," Organization Science, INFORMS, vol. 26(2), pages 456-474, April.
    19. Tubiana, Matteo & Miguelez, Ernest & Moreno, Rosina, 2022. "In knowledge we trust: Learning-by-interacting and the productivity of inventors," Research Policy, Elsevier, vol. 51(1).
    20. Paul Hunermund & Ann Hipp, 2024. "Inventor Mobility After the Fall of the Berlin Wall," Papers 2409.01861, arXiv.org, revised Jan 2025.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecmode:v:156:y:2026:i:c:s0264999326000143. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/30411 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.