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We study four issues in R&D-productivity dynamics: does R&D Granger cause productivity, is there a lag between R&D and its productivity effects, does the potency of R&D vary in timing and magnitude, and what is the role of R&D spillovers and aggregate shocks. The results suggest that R&D causes...
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This paper studies the impact of foreign direct investment on domestic firms' innovation in China. It provides causal … evidence by exploiting China's foreign direct investment deregulation in 2002 and employs a difference-in-difference estimation … firms' innovation benefit from foreign direct investment. Moreover, the paper emphasizes the importance of knowledge …
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