Tech War and Trade War: The Impact of Techno-nationalism and Trade-nationalism on Firm Innovation
Speaker: Dr. Tianyu GONG
Time/Date: 3 PM, Thur. 6th, March 2025
Classroom: Room 2101, Tongji Building A
ABSTRACT
Nationalism, in the forms of trade-nationalism and techno-nationalism, has become increasingly prominent, particularly in the context of the United States' ongoing trade and tech war with China. While existing literature on management has primarily focused on the impact of trade-nationalism, it has largely overlooked the role of techno-nationalism in driving firm’s innovation. This is particularly puzzling, given the paradox that techno-nationalism is typically expected to hinder innovation, yet anecdotal evidence points to the contrary. To address this paradox, this study applies the technology-push and demand-pull models of innovation, suggesting that techno-nationalism by a leading country can prompt firms in a follower country to reconfigure their innovation, shifting from extension-based innovation to novelty-based one. Furthermore, the imposition of trade-nationalism by leading countries can further accelerate this shift. Drawing on data from 1,100 publicly listed Chinese firms between 2017 and 2022, we offer robust empirical evidence supporting these claims. This study contributes to a deeper understanding of how firms respond to crises from geopolitical tensions.