讲座：Foreign Competition and New Product Creation: Evidence from Trademark Data
题 目：Foreign Competition and New Product Creation: Evidence from Trademark Data
嘉 宾：Wenrui Zhang, Associate Professor, The Chinese University of Hong Kong
主持人：许文健 助理教授 上海交通大学安泰经济与管理学院
We examine the effects of foreign competition on corporate product development. Using a novel dataset of U.S. firms’ trademark registrations as a proxy for new product creation, we find a negative association between import penetration of an industry and new product creation by firms in the industry. The negative effect is more pronounced for firms operating in less competitive industries, less financially constrained firms, and firms with weaker managerial risk taking incentives. Moreover, the reduction in the quantity of new products is accompanied by an improvement in the quality and value of new products. Further analyses show that firms develop more novel and exploratory new products when facing foreign competition and their product development is more responsive to competitive threat from low wage countries. Taken together, our findings reveal the positive role of foreign competition in enhancing the efficiency of resource allocation in corporate product development.
Prof. Wenrui Zhang is an Associate Professor at the Department of Finance of The Chinese University of Hong Kong (CUHK). His research interests mainly lie in the field of empirical corporate finance, including corporate governance, mergers & acquisitions, corporate innovation, capital structure, employee compensation, corporate social responsibility, and financial disclosure and reporting. His educational background includes a Ph.D. in Finance from Nanyang Business School of Nanyang Technological University, a Master of Science in Financial Economics from BI Norwegian Business School, and a Bachelor of Economics from Fudan University.