Opening up to the Outside World and Corporate Innovation: a Policy Competition Perspective

This book conducts research on opening-up policies and corporate innovation from the perspective of policy competition. It explores the optimal investment strategies of enterprises, target country policies, and decision-making mechanisms for corporate innovation based on the optimization motivations of enterprises and investment target countries. It has implications for China's policy arrangements for opening up and corporate decision-making. In order to answer these questions, this book brings policy competition, opening up and corporate innovation into the same analytical framework, and based on theoretical analysis and empirical research, points out that policy competition seriously affects the flow of foreign investment. However, subsidies are not always the optimal investment policy. On the contrary, investment taxation and even anti-monopoly regulations may be an economic means for the country to avoid huge profit losses due to the entry of foreign investment. From the perspective of stimulating enterprise innovation, actively introducing foreign investment or allowing parallel imports is a better measure.