Corporate trade war uncertainty and patent bubble
This paper draws upon resource dependence theory and investigates how trade policy uncertainty affects firm strategic innovation management in China. Adopting a machine learning approach called Word2Vec from computational linguistics, we construct and validate a measure of firm-level managers’ perce...
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2023
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sg-smu-ink.sis_research-103222024-09-26T07:52:25Z Corporate trade war uncertainty and patent bubble YANG, Xu HU, Nan LIANG, Peng This paper draws upon resource dependence theory and investigates how trade policy uncertainty affects firm strategic innovation management in China. Adopting a machine learning approach called Word2Vec from computational linguistics, we construct and validate a measure of firm-level managers’ perceived trade war uncertainty (TWU). We find that TWU has a positive effect on the number of total patent applications, but this positive effect is totally driven by low-quality patents instead of high-quality patents. Moreover, we document that firms have stronger incentives for such strategic innovation behavior when the underlying firms are more financially constrained, and/or when the management is more myopic. In addition, we open the behavioral black box of firms’ strategic innovation and demonstrate that patents can be employed opportunistically to meet government policies to further attract more government subsidies. 2023-08-01T07:00:00Z text application/pdf https://ink.library.smu.edu.sg/sis_research/9322 https://ink.library.smu.edu.sg/context/sis_research/article/10322/viewcontent/Corporate_Trade_War_Uncertainty_and_Patent_Bubble_pv.pdf http://creativecommons.org/licenses/by-nc-nd/4.0/ Research Collection School Of Computing and Information Systems eng Institutional Knowledge at Singapore Management University Databases and Information Systems Technology and Innovation |
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Databases and Information Systems Technology and Innovation YANG, Xu HU, Nan LIANG, Peng Corporate trade war uncertainty and patent bubble |
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This paper draws upon resource dependence theory and investigates how trade policy uncertainty affects firm strategic innovation management in China. Adopting a machine learning approach called Word2Vec from computational linguistics, we construct and validate a measure of firm-level managers’ perceived trade war uncertainty (TWU). We find that TWU has a positive effect on the number of total patent applications, but this positive effect is totally driven by low-quality patents instead of high-quality patents. Moreover, we document that firms have stronger incentives for such strategic innovation behavior when the underlying firms are more financially constrained, and/or when the management is more myopic. In addition, we open the behavioral black box of firms’ strategic innovation and demonstrate that patents can be employed opportunistically to meet government policies to further attract more government subsidies. |
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YANG, Xu HU, Nan LIANG, Peng |
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YANG, Xu HU, Nan LIANG, Peng |
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YANG, Xu |
title |
Corporate trade war uncertainty and patent bubble |
title_short |
Corporate trade war uncertainty and patent bubble |
title_full |
Corporate trade war uncertainty and patent bubble |
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Corporate trade war uncertainty and patent bubble |
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Corporate trade war uncertainty and patent bubble |
title_sort |
corporate trade war uncertainty and patent bubble |
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Institutional Knowledge at Singapore Management University |
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2023 |
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https://ink.library.smu.edu.sg/sis_research/9322 https://ink.library.smu.edu.sg/context/sis_research/article/10322/viewcontent/Corporate_Trade_War_Uncertainty_and_Patent_Bubble_pv.pdf |
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