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Innovation Potential, Firm Life Cycle, and Cross-Country Productivity Differences
2024-12-13
Time: 10:00 am- 11:30 am, Dec. 13th, 2024
Speaker: Xiaomei Sui
(University of Hong Kong)
Venue: 1F, Wanzhong Building, Langrun Garden, Peking University
Platform: Zoom
Meeting ID: 994 5991 6531
Passcode: inse
Abstract:
I provide new facts on firm type, innovation quality and innovation frequency in both developed and developing countries. In developed countries, firm type, innovation quality, and innovation frequency are mostly determined at birth. In developing countries, there are fewer innovative and radically innovative firms. Additionally, these firms have lower radical innovation frequency but higher incremental innovation frequency. The cross-country difference is mainly observed in high external financial dependence industries. To explain these facts, I build an endogenous growth model with financial frictions and firm heterogeneity and demonstrate that collateral constraints combined with limited liability conditions impede innovative firm creation and distort firms' choice between radical and incremental innovation in developing countries. I offer new policy implications for countries at different development stages.
Speaker:
Prof. Xiaomei Sui joined the University of Hong Kong in 2023 as an Assistant Professor in Economics. Her research interests primarily focus on international economics and macroeconomics. Currently, her research delves into the realm of heterogeneous firm decision-making, examining how these decisions diverge within different market environments. She also investigates the impact of these decisions on resource allocation, market structure, and economic development and growth, specifically from the perspective of an open economy.