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Do state-owned enterprises influence technological development?

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  • Yan, Eric

Abstract

A policymaker may intervene to lower royalties of licensed technology when state-owned firms have higher expenditures on technology. In this paper, we show that firms may more tend to imitate than to innovate when, due to this intervention, the marginal benefit of innovation shrinks in comparison with imitation. We empirically confirm this by comparing China to India, as these two countries promote state-owned firms to different degrees.

Suggested Citation

  • Yan, Eric, 2020. "Do state-owned enterprises influence technological development?," Economics Letters, Elsevier, vol. 193(C).
    • Handle: RePEc:eee:ecolet:v:193:y:2020:i:c:s0165176520302044
    DOI: 10.1016/j.econlet.2020.109306
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    References listed on IDEAS

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    More about this item

    Keywords

    In-house innovation vs. imitation; State-owned firms;

    JEL classification:

    • F0 - International Economics - - General
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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