On “Trade Induced Technical Change: The Impact of Chinese Imports on Innovation, IT, and Productivity”

Foreign Competition and Domestic Innovation: Evidence from US Patents

Douglas Campbell and Karsten Mau

The Review of Economic Studies, 2021, vol. 88, issue 5, 2555-2559

Abstract: Bloom et al. (2016) find that Chinese import competition induced a rise in patenting, IT adoption, and total factor productivity (TFP) by up to 30% of the total increase in Europe in the late 1990s and early 2000s. We uncover several coding errors in an important robustness check of their patent results. When corrected, we find no statistically significant relationship between Chinese competition and patents. Other specifications in the original paper use a problematictransformation. This normalization induces bias given low average patent counts for firms in China-competing sectors and rapidly declining patents across the sample.

Keywords: Patents; China; Europe; Textiles; Trade shocks; Manufacturing; F14; F13; L25; L60 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (3)

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Working Paper: On "Trade Induced Technical Change: The Impact of Chinese Imports on Innovation, IT and Productivity" (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:oup:restud:v:88:y:2021:i:5:p:2555-2559.

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