The impact of relaxing technology export regulations on corporate innovation

Haoyang Li, Mingjing Yang, Yanqi Sun and Jingwei Chen

Finance Research Letters, 2022, vol. 50, issue C

Abstract: By leveraging China's 2008 revision of the “Catalogue of Technologies Prohibited and Restricted from Export” as an exogenous shock, we conduct difference-in-difference regressions to examine the impact of relaxing technology export restrictions (TERs) on corporate innovation. The results show that relaxing TERs increases the number of innovative patent applications of a specific firm by increasing its R&D investment. Additional tests suggest that relaxing TERs raises outbound direct investments (ODI). Overall, relaxing TERs motivates firms to allocate more resources to innovation projects. Hence, the innovation outcomes and innovation quality of the firm significantly increase after technologies are removed from TERs.

Keywords: Technology export regulation; Innovation; R&D investments (search for similar items in EconPapers)
JEL-codes: D92 N45 N75 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:50:y:2022:i:c:s1544612322004524

DOI: 10.1016/j.frl.2022.103256

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