title: Foreign Political Risk and Technological Change
abstract: This paper studies how innovation reacts to foreign political risk and shapes its economic consequences.In a model with foreign political shocks that can disrupt the supply of foreign inputs, we show that greater political risk abroad increases domestic innovation, thereby lowering reliance on risky sourcing countries.We then combine data on sector-level technology development with time-varying measures of industry-level exposure to foreign political risk and report three sets of empirical findi
journal: National Bureau of Economic Research