Escaping Chinese Import Competition ? Evidence from U . S . Firm Innovation ( Job Market Paper )
@inproceedings{Dranove2017EscapingCI, title={Escaping Chinese Import Competition ? Evidence from U . S . Firm Innovation ( Job Market Paper )}, author={D. Dranove}, year={2017} }
This paper examines the impact of competition from Chinese imports on innovation by U.S. public manufacturing firms. Exploiting cross-industry and over-time trade variations from 1991 to 2004, I find that when Chinese imports surged into the U.S. market, U.S. public manufacturing firms increased their number of patents as a response. In addition, U.S. public manufacturing firms appeared to adopt horizontal differentiation as a strategy to escape Chinese competition; they were more likely to… CONTINUE READING
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