Recent U.S.-China tensions have raised the specter of technological decoupling. This paper examines the impact of U.S. export restrictions and technology licensing on Chinese firms’ innovation. It finds that U.S. sanctions reduce the quantity and quality of patent outputs of targeted Chinese firms, primarily due to decreased collaboration with U.S. inventors. However, firms with higher initial patent stock or in sectors with a smaller technological distance to the U.S. are less affected. Sanctions in specific technology fields lead to a decline in the patent output of both Chinese firms with U.S. collaborators and U.S. firms with Chinese collaborators.
Authors
Cao, Yu, De Nicola, Francesca, Mattoo, Aaditya, Timmis, Jonathan
- Citation
- “ Cao, Yu ; De Nicola, Francesca ; Mattoo, Aaditya ; Timmis, Jonathan . 2024 . Technological Decoupling? The Impact on Innovation of US Restrictions on Chinese Firms . Policy Research Working Paper; 10950 . © Washington, DC: World Bank . http://hdl.handle.net/10986/42282 License: CC BY 3.0 IGO . ”
- Collection(s)
- Policy Research Working Papers
- DOI
- http://dx.doi.org/10.1596/1813-9450-10950
- Identifier externaldocumentum
- 34404960
- Identifier internaldocumentum
- 34404960
- Pages
- 65
- Published in
- United States of America
- Region country
- China
- RelationisPartofseries
- Policy Research Working Paper; 10950
- Report
- WPS10950
- Rights
- CC BY 3.0 IGO
- Rights Holder
- World Bank
- Rights URI
- https://creativecommons.org/licenses/by/3.0/igo/
- UNIT
- EAP Chief Economist Unit (EAPCE)
- URI
- https://hdl.handle.net/10986/42282
- date disclosure
- 2024-10-23
- region administrative
- East Asia and Pacific
Files
Table of Contents
- Introduction 4
- Recent Trends in Chinese Patenting 8
- Data 9
- Data Source and Sample 9
- Outcome Variable 11
- Descriptive Statistics 13
- Results 13
- Benchmark Empirical Models 14
- Robustness 16
- Mechanism 18
- Collaboration with the U.S. 18
- Chinese Innovation Capacity 21
- Spillover Effects: Indirectly Connected Firms 23
- Chinese firms in the sanctioned technology field 23
- Firms in the upstream and downstream technology fields 26
- U.S. firms in the sanctioned technology field 28
- Conclusion 29
- Figures 37
- Tables 40
- Appendix: Data and Sample 46
- Details in Construction of the Sample 46
- Construction of Sample and Measurement 48
- Appendix: Robustness and Additional Results 55
- Parallel Trend and TWFE 55
- Robustness 58
- Additional Results 60
