Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/222126
Authors: 
Fons-Rosen, Christian
Pu, Zhaoxin
Year of Publication: 
2020
Series/Report no.: 
Discussion Paper 229
Abstract: 
Recent innovation literature has documented the benefits of cross-pollination of ideas across a wide set of industries and technology fields in an economy. Industrial and trade policies, by contrast, tend to favor economic specialization through the promotion of selected sectors. In this paper we use a firm-level panel of 13 European countries to assess whether an industry-specific policy propagates across the network of innovating firms through technological linkages. Following the competition shock to the European textile sector, triggered by the 2001 removal of import quotas on Chinese textiles, we find that patenting and knowledge sourcing behavior of non-textile firms are negatively affected. At the aggregate regional level, this indirect effect on non-textile firms can be around three to five times larger than the direct effect.
Subjects: 
technological linkages
spillovers
patents
knowledge sourcing
industrial policy
JEL: 
D57
L25
L60
O33
O38
Document Type: 
Working Paper

Files in This Item:
File
Size
915.33 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.