We use a difference-in-difference research design to examine the effect of an exogenous shock to a firm's R&D investment from Chinese regulations regarding technology exports revised in 2008. We document that these technology export restrictions (TERs) decrease a firm's R&D investment....

Economic policy uncertainty relates to the complexity and unpredictability of the macroeconomic policy formulation process. Such uncertainty affects firm innovation. By constructing an innovation strategic option model, we find that economic policy uncertainty will have a negative influence on...