Foreign competition and domestic innovation: evidence from U.S. patents / David Autor (MIT, NBER and IZA), David Dorn (University of Zurich, CEPR and IZA), Gordon H. Hanson (UC San Diego, NBER and IZA), Gary Pisano (Harvard University), Pian Shu (Georgia Institute of Technology) ; IZA Institute of Labor Economics
VerfasserAutor, David H. ; Dorn, David ; Hanson, Gordon H. ; Pisano, Gary P. ; Shu, Pian
KörperschaftForschungsinstitut zur Zukunft der Arbeit
ErschienenBonn, Germany : IZA Institute of Labor Economics, September 2019
Elektronische Ressource
Umfang1 Online-Ressource (19 Seiten) : Diagramme
SerieDiscussion paper ; no. 12638
 Das Dokument ist öffentlich zugänglich im Rahmen des deutschen Urheberrechts.
Foreign competition and domestic innovation: evidence from U.S. patents [0.63 mb]
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Manufacturing accounts for more than three-quarters of U.S. corporate patents. The competitive shock to this sector emanating from China's economic ascent could in theory either augment or stifle U.S. innovation. Using three decades of U.S. patents matched to corporate owners, we quantify how foreign competition affects domestic innovation. Rising import exposure intensifies competitive pressure, reducing sales, profitability, and R&D expenditure at U.S. firms. Accounting for confounding sectoral patenting trends, we find that U.S. patent production declines in sectors facing greater import competition. This adverse effect is larger among initially less profitable and less capital-intensive firms.