Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/207463
Authors: 
Autor, David
Dorn, David
Hanson, Gordon H.
Pisano, Gary
Shu, Pian
Year of Publication: 
2019
Series/Report no.: 
IZA Discussion Papers No. 12638
Abstract: 
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.
Subjects: 
innovation
patents
trade
JEL: 
F14
O30
Document Type: 
Working Paper

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