800 West Peachtree Street N.W.
Scheller College of Business
Georgia Institute of Technology
Atlanta, GA 30308-1149
NBER Working Papers and Publications
|June 2018||The Impact of Trade Liberalization on Firm Productivity and Innovation|
with Claudia Steinwender: w24715
This chapter reviews the empirical economics literature on the impact of trade liberalization on firms' innovation-related outcomes. We define and examine four types of shocks to trade flows: import competition, export opportunities, access to imported intermediates, and foreign input competition. Our review reveals interesting heterogeneities at the country and firm levels. In emerging countries, trade liberalization appears to spur productivity and innovation. In developed countries, export opportunities and access to imported intermediates tend to encourage innovation, but the evidence on import competition is mixed, especially for firms in the United States. At the firm level, the positive effects of trade on innovation are more pronounced at the initially more productive firms while t...
|The Impact of Trade Liberalization on Firm Productivity and Innovation|
with Claudia Steinwender
in Innovation Policy and the Economy, Volume 19, Josh Lerner and Scott Stern, editors
|December 2016||Foreign Competition and Domestic Innovation: Evidence from U.S. Patents|
with David Autor, David Dorn, Gordon H. Hanson, Gary Pisano: w22879
The competitive shock to the U.S. manufacturing sector spurred by rising China import competition could either catalyze or stifle innovation. Using three distinct sources of variation to identify rising trade exposure, we provide a causal analysis of the effect of surging import competition on U.S. innovative activities. Applying a novel internet-based matching algorithm to map all U.S. utility patents granted by 2013 to firm-level data, and carefully accounting for the shifting concentration of patenting activity across sectors, we document a robust, negative impact of rising Chinese competition on firm-level and technology class-level patent production. Accompanying this fall in innovation, global employment, sales, profitability, and R&D expenditure all decline within trade-exposed firm...