TY  - BOOK
AU  - König,Michael
AU  - Song,Zheng Michael
AU  - Storesletten,Kjetil
AU  - Zilibotti,Fabrizio
ED  - National Bureau of Economic Research.
TI  - From Imitation to Innovation: Where Is all that Chinese R&D Going? 
T2  - NBER working paper series
PY  - 2020///
CY  - Cambridge, Mass.
PB  - National Bureau of Economic Research
N1  - June 2020; Hardcopy version available to institutional subscribers
N2  - We construct a model of firm dynamics with heterogeneous productivity and distortions. The productivity distribution evolves endogenously as the result of the decisions of firms seeking to upgrade their productivity over time. Firms can adopt two strategies toward that end: imitation and innovation. The theory bears predictions about the evolution of the productivity distribution. We structurally estimate the stationary state of the dynamic model targeting moments of the empirical distribution of R&D and TFP growth in China during the period 2007--2012. The estimated model fits the Chinese data well. We compare the estimates with those obtained using data for Taiwan and find the results to be robust. We perform counterfactuals to study the effect of alternative policies. We find large effects of R&D misallocation on long-run growth
UR  - https://www.nber.org/papers/w27404
UR  - http://dx.doi.org/10.3386/w27404
ER  -