Does Import Competition Reduce Domestic Innovation? Evidence from the 'China Shock' and Firm-Level D

However, the average share of manufacturing in the total BERD expenditure in Canada was lower in the post-2000 period than in the pre-2000 period. [...] 19 Contracts and third-party payments are distinguished by the degree of control over the performance of the R&D and the right to use the R&D. [...] In a third-party payment, the performer has full control over the performance of the R&D and the payer has non-exclusive rights to use the outcomes of the R&D. [...] 22 In the GIFI files, payments for capital lease are recorded as income by the owner of the capital while the leased capital is recorded in the balance sheet of the user. [...] Both in the R&D and the TFP sample, we find that the initial level of profitability (a proxy for the initial competition level) and the initial productivity level were lower for smaller firms than for larger firms.