Topic:Timing and Quality of Innovation: Evidence from 1986 U.S.-Japan Semiconductor Trade Conflict

Lecturer: Yang Ming

Yang Ming is a research fellow in Chinese Economics and Management, School of Innovation and Development, Central University of Finance and Economics. He is an assistant professor in the School of Economics and received his Ph.D. from Boston University Economic growth and enterprise R&D innovation activities.

Abstract: 

This paper studies the effects of the 1986 U.S.-Japan semiconductor trade conflict on the R&D performance of U.S. semiconductor firms. These firms exhibited higher returns to R&D in response to the removal of the protectionist policy over them, and empirical evidence attributes a lower quality of innovation to trade protection. I propose a theory where firms choose from innovation schemes different in quality and time structure. Temporary protectionist policy increases the payoff to innovation in the short term, encouraging protected firms to sacrifice quality for timeliness regarding innovation. The implications of my theory are verified by empirical tests.

Time:2:00 p.m, October 31th,2024

Venue: B322, Zhixin Building, Central Campus