Research on the Influence of Trade Friction on the Innovation of High-tech Enterprises in China

Abstract

This paper empirically examines the impact of trade frictions on R&D innovation in Chinese high-tech firms based on the data of three batches of the list of U.S. tariffs on Chinese exports in 2018 and the data of listed companies from 2007 to 2020, using the event of U.S. tariffs on Chinese goods as a quasi-natural experiment. It is found that:trade frictions have a negative impact on high-tech enterprises, mainly through the “cost effect” and “Schumpeter effect” to inhibit innovation.

Keywords

• trade frictions
• high and new technology enterprise
• u.s. tariff increase on china
• innovation