Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments August 4, 2022 erstellt
Beschreibung:
In this paper, we study the effects of entry deregulation on firm innovation, using the business registration reform in China as a case in point. Entry deregulation has negative impacts on patent applications, and the effects are more pronounced for larger firms and older firms. Firms spend more on R\&D, since it is harder to transform R&D into patents. Such findings are consistent with the explanation that an increase in market competition deters innovation. We estimate a quantitative firm-dynamics model, and the policy experiment based on the model estimates suggests that the positive welfare effects of entry deregulation are limited due to innovation deterrence