NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
loading...

The Impact of Emerging Market Competition on Innovation and Business Strategy

Lorenz Kueng, Nicholas Li, Mu-Jeung Yang

NBER Working Paper No. 22840
Issued in November 2016
NBER Program(s):Corporate Finance, Economic Fluctuations and Growth, Productivity, Innovation, and Entrepreneurship

How do firms in high-income countries adjust to emerging market competition? We estimate how a representative panel of Canadian firms adjusts innovation activities, business strategies, and exit in response to large increases in Chinese imports between 1999 and 2005. On average, process innovation declines more strongly than product innovation. In addition, initially more differentiated firms that survive the increase in competition have better performance ex-post, but are ex-ante more likely to exit. Differentiation therefore does not ensure insulation against competitive shocks but instead increases risk.

download in pdf format
   (509 K)

email paper

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w22840

Users who downloaded this paper also downloaded* these:
Fernald, Hall, Stock, and Watson w23543 The Disappointing Recovery of Output after 2009
Wang, Wei, Yu, and Zhu w23222 Measures of Participation in Global Value Chains and Global Business Cycles
Autor, Dorn, Hanson, Pisano, and Shu w22879 Foreign Competition and Domestic Innovation: Evidence from U.S. Patents
Bacolod, Cunha, and Shen w23542 The Impact of Alcohol on Mental Health, Physical Fitness, and Job Performance
Poterba, Venti, and Wise w23307 The Long Reach of Education: Health, Wealth, and DI Participation
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us