Proximity to the Frontier, Markups, and the Response of Innovation to Foreign Competition : Evidence from Matched Production-Innovation Surveys in Chile

This paper employs a matched firm production/innovation panel data set from Chile to explore the response of firm innovation to the increased competition arising from the China shock. In addition to covering a wider range of innovation inputs and o...

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Main Authors:	Cusolito, Ana Paula, Garcia-Marin, Alvaro, Maloney, William F.
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2021
Subjects:	INNOVATION COMPETITION TOTAL FACTOR PRODUCTIVITY
Online Access:	http://documents.worldbank.org/curated/en/356601629742092693/Proximity-to-the-Frontier-Markups-and-the-Response-of-Innovation-to-Foreign-Competition-Evidence-from-Matched-Production-Innovation-Surveys-in-Chile http://hdl.handle.net/10986/36198

id	okr-10986-36198
recordtype	oai_dc
spelling	okr-10986-361982021-08-27T05:10:32Z Proximity to the Frontier, Markups, and the Response of Innovation to Foreign Competition : Evidence from Matched Production-Innovation Surveys in Chile Cusolito, Ana Paula Garcia-Marin, Alvaro Maloney, William F. INNOVATION COMPETITION TOTAL FACTOR PRODUCTIVITY This paper employs a matched firm production/innovation panel data set from Chile to explore the response of firm innovation to the increased competition arising from the China shock. In addition to covering a wider range of innovation inputs and outputs than previously possible, the data allow generating measures of markups and efficiency (physical total factor productivity) that correspond more closely to the concepts of rents and technological leadership envisaged in the Schumpeterian literature. Except for the 10 percent most productive plants, increased competition depresses most measures of innovation. Falling rents exacerbate declines among laggards, while rising rents further increase innovation among leaders. 2021-08-26T18:35:32Z 2021-08-26T18:35:32Z 2021-08 Working Paper http://documents.worldbank.org/curated/en/356601629742092693/Proximity-to-the-Frontier-Markups-and-the-Response-of-Innovation-to-Foreign-Competition-Evidence-from-Matched-Production-Innovation-Surveys-in-Chile http://hdl.handle.net/10986/36198 English Policy Research Working Paper;No. 9757 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Latin America & Caribbean Chile
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	INNOVATION COMPETITION TOTAL FACTOR PRODUCTIVITY
spellingShingle	INNOVATION COMPETITION TOTAL FACTOR PRODUCTIVITY Cusolito, Ana Paula Garcia-Marin, Alvaro Maloney, William F. Proximity to the Frontier, Markups, and the Response of Innovation to Foreign Competition : Evidence from Matched Production-Innovation Surveys in Chile
geographic_facet	Latin America & Caribbean Chile
relation	Policy Research Working Paper;No. 9757
description	This paper employs a matched firm production/innovation panel data set from Chile to explore the response of firm innovation to the increased competition arising from the China shock. In addition to covering a wider range of innovation inputs and outputs than previously possible, the data allow generating measures of markups and efficiency (physical total factor productivity) that correspond more closely to the concepts of rents and technological leadership envisaged in the Schumpeterian literature. Except for the 10 percent most productive plants, increased competition depresses most measures of innovation. Falling rents exacerbate declines among laggards, while rising rents further increase innovation among leaders.
format	Working Paper
author	Cusolito, Ana Paula Garcia-Marin, Alvaro Maloney, William F.
author_facet	Cusolito, Ana Paula Garcia-Marin, Alvaro Maloney, William F.
author_sort	Cusolito, Ana Paula
title	Proximity to the Frontier, Markups, and the Response of Innovation to Foreign Competition : Evidence from Matched Production-Innovation Surveys in Chile
title_short	Proximity to the Frontier, Markups, and the Response of Innovation to Foreign Competition : Evidence from Matched Production-Innovation Surveys in Chile
title_full	Proximity to the Frontier, Markups, and the Response of Innovation to Foreign Competition : Evidence from Matched Production-Innovation Surveys in Chile
title_fullStr	Proximity to the Frontier, Markups, and the Response of Innovation to Foreign Competition : Evidence from Matched Production-Innovation Surveys in Chile
title_full_unstemmed	Proximity to the Frontier, Markups, and the Response of Innovation to Foreign Competition : Evidence from Matched Production-Innovation Surveys in Chile
title_sort	proximity to the frontier, markups, and the response of innovation to foreign competition : evidence from matched production-innovation surveys in chile
publisher	World Bank, Washington, DC
publishDate	2021
url	http://documents.worldbank.org/curated/en/356601629742092693/Proximity-to-the-Frontier-Markups-and-the-Response-of-Innovation-to-Foreign-Competition-Evidence-from-Matched-Production-Innovation-Surveys-in-Chile http://hdl.handle.net/10986/36198
_version_	1764484765161881600

Proximity to the Frontier, Markups, and the Response of Innovation to Foreign Competition : Evidence from Matched Production-Innovation Surveys in Chile

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