Mapping U.S.–China Technology Decoupling: Policies, Innovation, and Firm Performance

Pengfei Han (), Wei Jiang () and Danqing Mei ()
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Pengfei Han: Guanghua School of Management, Peking University, Beijing 100871, China
Wei Jiang: Goizueta Business School, Emory University, Atlanta, Georgia 30322; National Bureau of Economic Research, Cambridge, Massachusetts 02138; ECGI, 1040 Brussels, Belgium
Danqing Mei: Department of Finance, Cheung Kong Graduate School of Business, Beijing 100738, China

Management Science, 2024, vol. 70, issue 12, 8386-8413

Abstract: We develop measures of technology decoupling and dependence between the United States and China based on combined patent data. The first two decades of the century witnessed a steady increase in technology integration (or less decoupling), but China’s dependence on the United States increased (decreased) during the first (second) decade. Firms covered by China’s Strategic Emerging Industries policies became less decoupled with the United States, gained cash flows, and gained valuation, but they saw no improvement in either innovation output/quality or productivity. Post-U.S. sanctions, firms in sanctioned sectors and their downstream suffered in performance but also became less decoupled with the United States. However, firms in the upstream of the sanctioned sectors improved productivity and produced more high-quality innovations.

Keywords: technology decoupling; innovation; R&D; patent; firm performance (search for similar items in EconPapers)
Date: 2024
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