Innovation responses of Japanese firms to Chinese import competition

Nobuaki Yamashita, Isamu Yamauchi

Research output: Contribution to journalArticle

Abstract

This paper examines innovation responses of a panel of Japanese firms to the intensified import competition from China in the period 1995–2005. We build a comprehensive firm-level dataset linking patents and R&D merged to cross-industry measures of Chinese import competition. Accounting for a simultaneity bias between innovation and importing and the possible heterogeneous effects across firms, we found that patenting has increased in response to an influx of Chinese imports, but it has adversely affected the quality of innovation, measured by forward citations received. These effects are only observed for globally engaged firms, not for firms focusing on the domestic market.

Original languageEnglish
Pages (from-to)60-80
Number of pages21
JournalWorld Economy
Volume43
Issue number1
DOIs
Publication statusPublished - 1 Jan 2020

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import
innovation
firm
domestic market
patent
Innovation
Import competition
Japanese firms
China
industry
trend
Firm effects
Patenting
Simultaneity bias
Importing
Industry
Import
Domestic market
Citations
Patents

Keywords

  • China
  • Japan
  • R&D
  • import competition
  • innovation
  • patents

Cite this

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Innovation responses of Japanese firms to Chinese import competition. / Yamashita, Nobuaki; Yamauchi, Isamu.

In: World Economy, Vol. 43, No. 1, 01.01.2020, p. 60-80.

Research output: Contribution to journalArticle

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