We analyze the impact of rising import competition from China on U.S. innovative activities. Using Compustat data, we find that import competition induces R and D expenditures to be reallocated towards more productive and more profitable firms within each industry. Such reallocation effect has...

The empirical analysis in ""International R&D Spillovers"" (Coe and Helpman, 1995) is first revisited by applying modern panel cointegration estimation techniques to an expanded data set that we have constructed for the purpose of this study. The new estimates confirm the key results reported in...

The paper considers the issue of whether a supranational fiscal policy in Europe is needed, and, if so, what responsibilities it should undertake. The literature on endogenous growth and the principle of subsidiarity suggest that such a policy should be limited to externalities or economies of...