show that, in the early stages of innovation, Chinese firms fail to incorporate learning spillovers into their innovation …, learning spillovers positively increase firms' innovation output as well as their performance, especially for firms with high …This paper adopts a structural framework to study the process of indigenous innovation and its impact on firm …

into account firm heterogeneity. We find support for the prediction that competition has a negative effect on innovation … are important channels for domestic firm innovation. We do not find support for the inverted U effect of competition on … innovation. There is partial support for the hypothesis that firms in a more pro-business environment invest more in innovation …