TY - UNPB
T1 - Proximity to the frontier, markups, and the response of innovation to foreign competition
T2 - Evidence from matched production-innovation surveys in chile
AU - Garcia Marin, Álvaro Felipe
AU - Cusolito, Ana
AU - Maloney, William
PY - 2021
Y1 - 2021
N2 - This paper employs a matched firm production/innovation panel data set from Chile to explore the response of firm innovation to the increased competition arising from the China shock. In addition to covering a wider range of innovation inputs and outputs than previously possible, the data allow generating measures of markups and efficiency (TFPQ) that correspond more closely to the concepts of rents and technological leadership envisaged in the Schumpeterian literature. Except for the 10% most productive plants, increased competition depresses most measures of innovation. Falling rents exacerbate declines among laggards, while rising rents further increase innovation among leaders.
AB - This paper employs a matched firm production/innovation panel data set from Chile to explore the response of firm innovation to the increased competition arising from the China shock. In addition to covering a wider range of innovation inputs and outputs than previously possible, the data allow generating measures of markups and efficiency (TFPQ) that correspond more closely to the concepts of rents and technological leadership envisaged in the Schumpeterian literature. Except for the 10% most productive plants, increased competition depresses most measures of innovation. Falling rents exacerbate declines among laggards, while rising rents further increase innovation among leaders.
M3 - Working paper
SP - 1
BT - Proximity to the frontier, markups, and the response of innovation to foreign competition
ER -