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Sources of External Technology, Absorptive Capacity, and Innovation Capability in Chinese State-Owned High-Tech Enterprises

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  • Li, Xibao
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    Abstract

    Summary This paper examines the pattern of innovation and learning among state-owned enterprises in Chinese high-tech sectors and empirically estimates the impact of three types of investment for acquiring technological knowledge--in-house R&D, importing foreign technology, and purchasing domestic technology--on the innovation capabilities of firms. Based on a panel dataset consisting of 21 high-tech sectors during the period 1995-2004, an augmented knowledge production function is estimated. The results show that importing foreign technology alone does not facilitate innovation in Chinese state-owned high-tech enterprises, unless in-house R&D is also conducted. Domestic technology purchases, however, are found to have a favorable direct impact on innovation, suggesting that firms have less difficulty in absorbing domestic technological knowledge than utilizing foreign technology and that absorptive capacity is contingent upon the source or nature of the external knowledge.

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    Bibliographic Info

    Article provided by Elsevier in its journal World Development.

    Volume (Year): 39 (2011)
    Issue (Month): 7 (July)
    Pages: 1240-1248

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    Handle: RePEc:eee:wdevel:v:39:y:2011:i:7:p:1240-1248

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    Web page: http://www.elsevier.com/locate/worlddev

    Related research

    Keywords: R&D foreign technology import domestic technology purchase absorptive capacity innovation capability;

    References

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    Cited by:
    1. Gao, Lan & Liu, Xiaohui & Zou, Huan, 2013. "The role of human mobility in promoting Chinese outward FDI: A neglected factor?," International Business Review, Elsevier, vol. 22(2), pages 437-449.
    2. Poncet, Sandra & Starosta de Waldemar, Felipe, 2013. "Export Upgrading and Growth: The Prerequisite of Domestic Embeddedness," World Development, Elsevier, vol. 51(C), pages 104-118.
    3. Shahid Yusuf, 2012. "From Technological Catch-up to Innovation : The Future of China’s GDP Growth," World Bank Other Operational Studies 12781, The World Bank.
    4. Liu, Xiaohui & Hodgkinson, Ian R. & Chuang, Fu-Mei, 2014. "Foreign competition, domestic knowledge base and innovation activities: Evidence from Chinese high-tech industries," Research Policy, Elsevier, vol. 43(2), pages 414-422.
    5. Wang, Yuandi & Zhou, Zhao, 2013. "The dual role of local sites in assisting firms with developing technological capabilities: Evidence from China," International Business Review, Elsevier, vol. 22(1), pages 63-76.

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