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U.S.-China Innovation Competition

Author

Listed:
  • Gerard Hoberg
  • Huaizhou Li
  • Gordon M. Phillips

Abstract

We examine how foreign information access affects competition in innovation. We construct measures of Chinese information-gathering capacity based on industry geography and internet penetration. They predict actual Chinese-user downloads of U.S. firm filings. Increases in Chinese information access are followed by lower U.S. firm R&D, patent values, and patent grants. Chinese firms increase patenting in the same technology areas and cite more affected U.S. firms’ prior patents. The effects are stronger in more contested markets and in industries receiving Chinese government support. Placebo tests do not produce similar results. The evidence is consistent with Chinese innovation competition reducing U.S. innovation.

Suggested Citation

  • Gerard Hoberg & Huaizhou Li & Gordon M. Phillips, 2020. "U.S.-China Innovation Competition," NBER Working Papers 28231, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:28231
    Note: CF IFM ITI PR
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    Cited by:

    1. Yang, Xiangyang & Li, Zijun & Qiu, Zhaoxuan & Wang, Jinmin & Liu, Bei, 2024. "ESG performance and corporate technology innovation: Evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 206(C).

    More about this item

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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