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Plant-level innovation is introduced into an heterogeneous plant setting so that productivity dynamics are endogenous …. When policy distortions are positively correlated with plant productivity, I argue that accounting for plant innovation is … right skew in the distribution over productivity which magnifies TFP losses. Quantitatively, the innovation channel is …
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Firms, especially Chinese manufacturing firms, invest significant resources in innovation activities to sustain their position in the intensifying competitive environment. However, innovation efficiency has led to growing concerns due to the rapid increase in R&D expenditures. The purpose of...
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This paper studies the effect of competition on firm innovation by developing a discrete-time endogenous growth model where multi-product firms do two types of innovation subject to friction in technology spillovers. Firms improve their existing products through internal innovation while...
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This paper revisits the role of the manufacturing sector during the middle-income stage. By exploiting a large dataset that covers internationally comparable sectoral information, we prove that the manufacturing sector is imbued with three important characteristics. First, for middle-income...
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