The Impact of Emerging Market Competition on Innovation and Business Strategy

Lorenz Kueng, Nicholas Li and Mu-Jeung Yang

No 22840, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: How do firms in high-income countries adjust to emerging market competition? We estimate how a representative panel of Canadian firms adjusts innovation activities, business strategies, and exit in response to large increases in Chinese imports between 1999 and 2005. On average, process innovation declines more strongly than product innovation. In addition, initially more differentiated firms that survive the increase in competition have better performance ex-post, but are ex-ante more likely to exit. Differentiation therefore does not ensure insulation against competitive shocks but instead increases risk.

JEL-codes: F14 L2 O3 (search for similar items in EconPapers)
Date: 2016-11
New Economics Papers: this item is included in nep-bec, nep-com, nep-cse, nep-ino, nep-sbm and nep-tid
Note: CF EFG PR
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://www.nber.org/papers/w22840.pdf (application/pdf)

Related works:
Working Paper: The Impact of Emerging Market Competition on Innovation and Business Strategy (2020)
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:nbr:nberwo:22840

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w22840

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by (wpc@nber.org).