U.S. - China Innovation Competition

68 Pages Posted: 9 Dec 2018 Last revised: 8 Jun 2021

See all articles by Gerard Hoberg

Gerard Hoberg

University of Southern California - Marshall School of Business - Finance and Business Economics Department

Bruce Yuan Li

affiliation not provided to SSRN

Gordon M. Phillips

Dartmouth College - Tuck School of Business; National Bureau of Economic Research (NBER)

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Date Written: April 6, 2021

Abstract

We examine competition in the market for innovation and show that it is distinct from the widely studied issue of competition for existing products. We introduce new measures of information gathering capacity by Chinese firms based on industry agglomeration and internet penetration, which predict actual internet downloads of U.S. firm filings by Chinese internet users. Increases in the ability of Chinese industry peers to gather knowledge through the internet are followed by reductions in R&D and subsequent patents, and corresponding increased patenting by Chinese firms. The new Chinese patents also cite the patents of U.S. firms at a high rate, consistent with direct intellectual property competition.

Keywords: Innovation, competition, China, investment, internet penetration

JEL Classification: O31, O34, D43, F13

Suggested Citation

Hoberg, Gerard and Li, Bruce Yuan and Phillips, Gordon M., U.S. - China Innovation Competition (April 6, 2021). Tuck School of Business Working Paper No. 3294389, USC Marshall School of Business Research Paper Sponsored by iORB, No. Forthcoming, Available at SSRN: https://ssrn.com/abstract=3294389 or http://dx.doi.org/10.2139/ssrn.3294389

Gerard Hoberg (Contact Author)

University of Southern California - Marshall School of Business - Finance and Business Economics Department ( email )

Marshall School of Business
Los Angeles, CA 90089
United States

HOME PAGE: http://faculty.marshall.usc.edu/Gerard-Hoberg/

Bruce Yuan Li

affiliation not provided to SSRN

Gordon M. Phillips

Dartmouth College - Tuck School of Business ( email )

Hanover, NH 03755
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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