The Rise of the People’s Republic of China and its Competition Effects on Innovation in Japan

Nobuaki Yamashita and Isamu Yamauchi

Working Papers from eSocialSciences

Abstract: This paper empirically examines the “defensive innovation†hypothesis that firms with higher exposure to low-wage economy import competition intensively undertake more innovative activity by using a high quality Japanese firm-level panel dataset over the period 1994–2005. The novel feature of the analysis is the relation of firm-level variations of patent usage to import competition. The results suggest that intensified import competition from the People’s Republic of China has resulted in greater innovative activity by Japanese firms, consistent with the findings of European firms in Bloom et al. (2016). Moreover, such competition has also led to an increase in non-used patents.

Keywords: eSS; People’s Republic of China; defensive innovation; low-wage economy; import competition; innovative activity; firm panel dataset; Japanese firms; non-used patents; patents. (search for similar items in EconPapers)
Date: 2019-04
Note: Institutional Papers
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.esocialsciences.org/Download/repecDownl ... AId=13030&fref=repec

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ess:wpaper:id:13030

Access Statistics for this paper

More papers in Working Papers from eSocialSciences
Bibliographic data for series maintained by Padma Prakash ().