Chakravorty, Ujjayant; Liu, Runjuan; Tang, Ruotao; … - 2022
-wage countries, especially China. Does this competition hurt or help innovation by firms? This paper studies the effect of the surge … in imports from China on innovation in the US manufacturing sector. We first propose a simple theoretical framework which … generates an inverted U-shaped curve of innovation on imitation, that is based on the endogenous price elasticity of demand for …