Who wins and losses in the technology trade war? John van Reenen (MIT) explains why technology transfer in a globalised world isn’t a zero sum game
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Resistance to technology transfer has escalated as the competitive power of China has increased. That being said, China’s growth has benefited the West: It offers a huge market for goods and services, while competition has spurred innovation and stimulated investment. What’s more, trade tariffs will inhibit growth and waste resources. Focusing on domestic innovation, education, human capital accumulation, and unlocking talent is a more productive approach to winning the technology trade war.
Editor’s Note: This is part of our series on the US-China trade war.