Do trade barriers drive innovation? Micro-level evidence from anti-dumping and countervailing measures on R&D in Chinese solar PV firms

As international trade protectionism continues to grow and the renewable energy sector evolves rapidly, anti-dumping and countervailing measures (ADCV) pose a significant challenge to Chinese photovoltaic (PV) firms. Faced with the challenges of ADCV, it remains crucial to explore whether Chinese photovoltaic companies will experience stagnation or drive progress through technological innovation. Using a difference-in-differences (DID) model, this study examines the impact of ADCV on R&D investment by publicly listed Chinese PV firms from 2007 to 2023. The results show that: (1) ADCV have a ‘push effect,’ which promotes the investment of PV enterprises in technological innovation. (2) Mechanism analysis reveals that ADCV promote technological innovation by enhancing enterprise productivity and increasing competition in the PV market. (3) Government subsidies significantly boost the R&D investment effect under ADCV pressure. (4) Heterogeneity analysis shows that the impact is more pronounced in large enterprises, private firms, and companies in central and western China. This study demonstrates that ADCV have not suppressed innovation but instead have catalyzed it, offering empirical insights and strategic policy implications for enhancing the competitiveness of China's PV firms.