We examine the impact of import competition on firms’ innovation input and output. We conjecture that U.S. firms view import competition from high-wage countries (HWCs) as “neck-and-neck” competition and will respond by intensifying innovation. In contrast, U.S. firms will reduce...

The impact of competition on innovation has been extensively studied, but with ambiguous findings. We study the impact of import competition on U.S. corporate innovation and present some new perspectives. We conjecture that U.S. firms view import competition from high-wage countries (HWCs) as...