We use a new longitudinal data set of more than 15,000 Chinese manufacturing plants to show that the direct and indirect effects of foreign direct investment on measured firm level productivity depend on a number of firm specific features and institutional factors. We find that domestic firms...

This paper analyses the geography of innovation in China and India. Using a tailor-made panel database for regions in these two countries, we show that both countries exhibit increasingly strong polarisation of innovative capacity in a limited number of urban areas. But the factors behind this...