Internet Access and U.S. - China Innovation Competition

Gerard Hoberg, Yuan Li and Gordon Phillips

No 28231, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Using new measures of expanded Internet access in China and internet-based search, we examine how competitive shocks from China impact U.S. innovation through the markets for innovation and existing products. We identify shocks to innovation competition using the geography of Chinese internet penetration and Chinese import data. Increases in the ability of Chinese industry peers to gather knowledge through the internet are followed by reductions in U.S. R&D investment and subsequent patents, and increased patenting by Chinese firms. The new Chinese patents also cite the U.S. firms patents at a high rate, consistent with increased intellectual property competition.

JEL-codes: D43 F13 L21 L26 O31 O34 (search for similar items in EconPapers)
Date: 2020-12
New Economics Papers: this item is included in nep-cna, nep-com, nep-cse, nep-ind, nep-ino, nep-sbm and nep-tid
Note: CF IFM ITI PR
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