Institutional Logic and Firm Innovation Strategies in the Context of U.S.-China Technological Decoupling

Abstract

This study employs examines the effects of technological decoupling on R&D activities and innovation strategies of Chinese high-tech companies. Employing the institutional logics approach and the difference-in-difference model, the results show that: (1) technological decoupling triggers increased R&D intensity, leading to better innovation outcome and efficiency; (2) enterprises that are state-owned, public subsidized, with tax benefits exhibit higher R&D intensity; (3) enterprises tend to maintain their existing technological advantages and pursue domestic technological paths, developing exploitative and non-reliance innovation strategy. The study contributes to innovation management literature by providing evidence and implications on the ongoing trade and technological decoupling.

Keywords: U.S.-China decoupling, Technological decoupling, Innovation strategies, Institutional Logic