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Is There A Complementary Relationship Between Product And Process Innovation On Productivity In Taiwanese Manufacturing Firms?

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  • LIN, CHIA-LING
  • LIN, HUI-LIN
  • LIN, ERIC S.

Abstract

As a newly-industrialized country, Taiwan has gone through a vast industrial transformation. To reflect the impacts of innovation on firms' performance, we adopt a modified CDM (Crépon et al., 1998) model and focus on the innovation activities of Taiwanese manufacturing firms, especially on the comparison between OEM and non-OEM. Two data sources are uniquely compiled; one is the TTIS-II, and the other is the ICSC. Our findings suggest that considering the whole sample, only process innovation will improve both TFP growth and labor productivity growth. However, there exists a complementary relationship between product and process innovation on productivity among OEM.

Suggested Citation

  • Lin, Chia-Ling & Lin, Hui-Lin & Lin, Eric S., 2016. "Is There A Complementary Relationship Between Product And Process Innovation On Productivity In Taiwanese Manufacturing Firms?," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 57(2), pages 139-173, December.
    • Handle: RePEc:hit:hitjec:v:57:y:2016:i:2:p:139-173
    DOI: 10.15057/28221
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    More about this item

    Keywords

    innovation; R&D; productivity; complementarity; innovation surveys;
    All these keywords.

    JEL classification:

    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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