Joining Forces to Surmount the 'Small Yard, High Fence': U.S. Export Controls and Joint Innovation in Critical Digital Technologies by Chinese Firms

Amid profound changes in the landscape of international technological competition, Chinese firms urgently need to identify breakthrough pathways for surmounting the 'small yard, high fence' and achieving greater self-reliance and strength in science and technology. Using Chinese A-share listed companies from 2014 to 2022 as the research sample, this paper investigates the impact of U.S. export controls on intermediate technology products on joint innovation by Chinese firms in critical digital technology fields. The results show that U.S. export controls promote joint innovation between restricted Chinese firms and domestic entities in critical digital technology fields. This effect is compelled by shocks to industrial-chain risks: the stronger willingness to pursue localized adaptation induced by technology supply cutoffs encourages Chinese firms to seek joint innovation with domestic entities. U.S. export controls also promote joint innovation between restricted Chinese firms and entities not subject to the controls, but the compelling effect on joint innovation among restricted Chinese firms themselves is not evident; the tendency of controlled entities to 'band together for warmth' is concentrated primarily in industry–university–research collaboration between restricted Chinese firms and restricted Chinese universities. In technologically advanced fields where technological bottlenecks are concentrated, such as artificial intelligence and high-end chips, restricted Chinese firms likewise place greater emphasis on collaboration with domestic universities. Industry–university–research integration has become an important pathway for Chinese firms to surmount the 'small yard, high fence' under external pressure.