Sabrina Howell (NYU) will present:
"Joint Ventures and Technology Adoption"
at 3pm this Wednesday, December 2, 2015 in 310 Silsby
***THERE IS STILL ONE AVAILABLE MEETING SLOT AT 2:00pm***
Please sign up at:
Abstract
Despite a rich theoretical literature, there is little causal evidence about the effectiveness of industrial policy. One common policy requires foreign entrants to form
joint ventures (JVs) with domestic firms. China's auto sector is a useful case study, and recent fuel economy standards provide exogenous variation in the cost acquiring technology. The standards led Chinese firms, especially those with JVs, to decrease quality
relative to foreign firms rather than invest in fuel efficiency technology. Knowledge spillovers in JVs may not compensate for the negative impact of cannibalization incentives on innovation.