products to China. We find causal evidence that offshoring impacts both the level and nature of innovation. In the technologies … directly related to product categories that could be offshored more easily after the policy shock, overall innovation levels … decline and innovative effort shifts away from product innovation and towards process innovation. However, we also find …

, patenting, productivity, and profitability. We find that while more innovation promotion subsidies seem to flow into the listed …

-post productivity growth throughout our data window, 2007 to 2018. Neither subsidies given out under the name of R&D and innovation …