Exports and Innovation: Evidence from Antidumping Duties Against Japanese Firms
By conducting a difference-in-difference analysis, we examine how the targeted exporters adjust their innovative activities in the face of the negative export shock inflicted by the policy experiments of the antidumping cases in the United States market during 1991–2008. We construct the novel micro-dataset, combining the targeted firms by antidumping duties and firm-level patenting as a measure of innovative activities. We found that the antidumping-targeted firms respond to the negative export shock by allocating more innovation activities to expand international patents at the cost of domestic innovation. This resource allocation of innovative activities is more prominent when the initial export intensity is high.