Competition is the catalyst of corporate innovation,which is the foundation of a country's core competitiveness.From the view of vertical industrial chain,this paper examines how downstream competition affects ups...Competition is the catalyst of corporate innovation,which is the foundation of a country's core competitiveness.From the view of vertical industrial chain,this paper examines how downstream competition affects upstream firms'innovation output.Given innovation helps reduce the production cost of each product,increasing demand of intermediate products caused by downstream competition enhances the marginal revenue of upstream firms'innovation,thus leading to an innovation incentive effect.To identify causality,we utilize China's WTO accession,a quasinatural experiment,to calculate downstream competition combined with import tariff reduction and input-output table,and then run a difference-in-difference regression.Using the data of Annual Survey of Industrial Firms and State Intellectual Property Office,our results find that downstream competition has a significantly positive impact on upstream firms'innovation,and this effect is more pronounced in firms with less industry competition,greater initial innovation capacity and weaker financial constraints.Moreover,the number of firms,the degree of industry competition and the scale of intermediate products in the downstream sector increase,confirming the market size channel.In sum,our findings document that downstream competition can motivate upstream firms to innovate through vertical industrial chain,providing some useful insights for China to build a fair market competition environment and promote innovation-driven growth regime.展开更多
The recent move towards decoupling from China,prompted by the 2018 trade conflict,has implications for the innovativeness of Chinese firms.Using patent data from the Chinese State Intellectual Property Office,together...The recent move towards decoupling from China,prompted by the 2018 trade conflict,has implications for the innovativeness of Chinese firms.Using patent data from the Chinese State Intellectual Property Office,together with comprehensive firm-level data,and applying an inverse propensity score reweightingmethodology todealwith selection bias,we estimated changes in the patenting activity of firms following ownership transition to Chinese owners,linking these changes to the differential taxation incentives offered to foreign investors.Far from crippling innovation,divestment has sparked an increase in patent applications-including higher end invention patents-and other innovation measures.Together with robustness checks,our estimations suggest a real improvement in innovation rather than just a window-dressing exercise.We suggest that one possible explanation may be an effort by the new Chinese owners to reduce their tax burden.Our supplementary findings on tax payments and subsidy receipts following divestmentappearinlinewiththis interpretation.展开更多
By applying stochastic frontier analysis,and replacing total export with value added in exports as a more accurate measure of domestic content embodied in exports,we estimate the trade efficiency between China and EU ...By applying stochastic frontier analysis,and replacing total export with value added in exports as a more accurate measure of domestic content embodied in exports,we estimate the trade efficiency between China and EU countries and analyze the determinant factors.The results show that the value added in trade between China and EU countries is running at a low level of efficiency,and the trade efficiency has an obvious imbalance between export and import.Our calculation of unexplored trade potential indicates that western EU countries,such as France,Germany,Italy,and Spain together are China 5 top trading partner with the highest unexploited trade potential.Based on the principal component analysis of 14 trading-related variables,trade efficiency determinant results show that the tangible trade infrastructures of both exporter and importer matters most,including airports,container shipping,Internet,and broadband infrastructures.Meanwhile,intangible trade infrastructures,including customs procedures and domestic business environments,has a significant,but smaller influence on trade efficiency.Our important findings shed light on practical trade policymaking to encourage Sino-EU trade collaboration.展开更多
文摘Competition is the catalyst of corporate innovation,which is the foundation of a country's core competitiveness.From the view of vertical industrial chain,this paper examines how downstream competition affects upstream firms'innovation output.Given innovation helps reduce the production cost of each product,increasing demand of intermediate products caused by downstream competition enhances the marginal revenue of upstream firms'innovation,thus leading to an innovation incentive effect.To identify causality,we utilize China's WTO accession,a quasinatural experiment,to calculate downstream competition combined with import tariff reduction and input-output table,and then run a difference-in-difference regression.Using the data of Annual Survey of Industrial Firms and State Intellectual Property Office,our results find that downstream competition has a significantly positive impact on upstream firms'innovation,and this effect is more pronounced in firms with less industry competition,greater initial innovation capacity and weaker financial constraints.Moreover,the number of firms,the degree of industry competition and the scale of intermediate products in the downstream sector increase,confirming the market size channel.In sum,our findings document that downstream competition can motivate upstream firms to innovate through vertical industrial chain,providing some useful insights for China to build a fair market competition environment and promote innovation-driven growth regime.
基金Haiou Mao would like to express her gratitude to the National Natural Science Foundation of China(No.72203067)the Central University Basic Research Fund of China(No.2662021JGQD007)。
文摘The recent move towards decoupling from China,prompted by the 2018 trade conflict,has implications for the innovativeness of Chinese firms.Using patent data from the Chinese State Intellectual Property Office,together with comprehensive firm-level data,and applying an inverse propensity score reweightingmethodology todealwith selection bias,we estimated changes in the patenting activity of firms following ownership transition to Chinese owners,linking these changes to the differential taxation incentives offered to foreign investors.Far from crippling innovation,divestment has sparked an increase in patent applications-including higher end invention patents-and other innovation measures.Together with robustness checks,our estimations suggest a real improvement in innovation rather than just a window-dressing exercise.We suggest that one possible explanation may be an effort by the new Chinese owners to reduce their tax burden.Our supplementary findings on tax payments and subsidy receipts following divestmentappearinlinewiththis interpretation.
基金This research was supported financially by the National and Regional Research Projects of Chinese Education Ministry(No.2020-G56)the Humanities and Social Sciences Funding of Wuhan University(No.2020SK033)+1 种基金the Youth Academic Team Project in Humanities and Social Sciences of Wuhan University(No.4103-413100001)the Fundamental Research Funds for the Central Universities(No.2662021JGQD007).
文摘By applying stochastic frontier analysis,and replacing total export with value added in exports as a more accurate measure of domestic content embodied in exports,we estimate the trade efficiency between China and EU countries and analyze the determinant factors.The results show that the value added in trade between China and EU countries is running at a low level of efficiency,and the trade efficiency has an obvious imbalance between export and import.Our calculation of unexplored trade potential indicates that western EU countries,such as France,Germany,Italy,and Spain together are China 5 top trading partner with the highest unexploited trade potential.Based on the principal component analysis of 14 trading-related variables,trade efficiency determinant results show that the tangible trade infrastructures of both exporter and importer matters most,including airports,container shipping,Internet,and broadband infrastructures.Meanwhile,intangible trade infrastructures,including customs procedures and domestic business environments,has a significant,but smaller influence on trade efficiency.Our important findings shed light on practical trade policymaking to encourage Sino-EU trade collaboration.
