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Globalization

Chinese imports seem to hurt American innovation

Source: JournalistsResource.org

Competition from China appears to be hobbling innovation in the United States, say the authors of a new study that juxtaposes import penetration and patent applications.

The issue: A company’s innovation is sometimes measured by the number of its patent applications. Patents, the idea goes, indicate spending on research and development, which is especially key in the manufacturing sector. What does it mean when patent applications fall?