This paper examines how bilateral political tensions between the U.S. and other countries impact the innovation of US multinational corporations. The results suggest that strained political relations hinder collaboration among international inventors, reducing innovation outputs. Teams including...

Previous literature finds that larger downstream markets fuel the innovation of new technologies by incentivizing firms to spend more on R&D. Our evidence shows that larger markets also increase the extent of licensing-based cooperation between upstream innovators and downstream commercializers....