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Proximity to the frontier, markups, and the response of innovation to foreign competition

The impacts of rising competition on innovation remain unclear, and often depend on country context. This column analyses the impact of increased import competition from China on innovation by Chilean firms. It finds a negative overall impact of competition on innovation indicators. Low-productivity firms in particular see declines across all innovation measures, while the ....

United States , World Bank , District Of Columbia , J Van Biesebroeck , J Van Reenen , Van Biesebroeck , Firm Performance , Research Working Paper Series , Harvard University , World Bank Publications , Journal Of Development Economics , United Kingdom , Quarterly Journal , Domestic Innovation , American Economic Review , Induced Technical , Chinese Imports , Economic Studies , Trade Induced Technical Change , Foreign Competition , Matched Production Innovation Surveys , Policy Research Working Paper Series , Annual Review , American Economic Journal , Invertedu Relationship , Market Structure ,