Are U.S. export controls an effective policy for innovation?

Grzana, Marta Helena (2025) Are U.S. export controls an effective policy for innovation? UCL Journal of Economics, 4 (1). ISSN 2753-6769

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Abstract

Who bears the predominant cost of U.S. semiconductor export controls? Using CPI and import price data, and a difference-in-differences design, I conclude that it is the U.S. government. I find that export controls decreased the price paid by customers for semiconductor-based electronics yet increased the import price of semiconductors. I adapt theoretical frameworks by Mazzucato and Atkinson & Ezell to evaluate how policymakers can shape innovation markets through positive and negative measures. I evaluate export controls as an innovation policy and their effect on domestic and foreign innovation processes. My findings suggest that there should be greater consideration of foreign policy reactions in shaping innovation policy.

Item Type:	Article
Additional Information:	© 2025 The Author(s)
Divisions:	Centre for Macroeconomics
Subjects:	J Political Science H Social Sciences > HB Economic Theory H Social Sciences > HF Commerce
Date Deposited:	01 Oct 2025 15:51
Last Modified:	01 Oct 2025 15:51
URI:	http://eprints.lse.ac.uk/id/eprint/129662

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