Seminar（Dept. of Trade Economics）

Title:Political Tensions and Innovation Strategies of Chinese Firms?

Speaker:Jiatao Li (Hong Kong University of Science and Technology)

Time:10:00-11:30 (Thursday), May 9th, 2024

Venue:Room 1008, Mingde Business Building

Language:English

ABSTRACT:

This study sheds light on the strategic adaptation of Chinese high-tech firms navigating an increasingly volatile and uncertain global environment. To mitigate surging risks, we posit that innovation decoupling emerges as a potential strategic response for Chinese firms. Using a dataset of Chinese listed firms from 2009-2022 and a differences-in-differences model, we find that peer entity listing leads to increased innovation decoupling. Furthermore, international exposure at the industry, firm, and top management levels strengthens this effect by enhancing risk awareness.