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Foreign equity, exporting and firm innovation: an emerging market perspective

Author

Listed:
  • Jianghua Zhou

    (Beijing Normal University)

  • Zixu Liu

    (Tsinghua University)

  • Jizhen Li

    (Tsinghua University)

  • Gupeng Zhang

    (University of Chinese Academy of Sciences)

Abstract

This study aims to understand how different types of global engagement influence firms’ innovation, and also to explore the boundary condition of the global engagement-innovation relationship. We use 3-year panel data from the National High-growth Firms in High-tech Zones Database to test our hypotheses. Our finding shows that foreign equity has an inverted U-shaped effect on firm innovation, while exporting positively affects innovation. Local R&D effort sharpens the effects of foreign equity and positively moderates the effects of exporting on firm innovation; while academic collaboration flattens the effects of foreign equity. Our study provides an integrated framework for analyzing different influence mechanisms of the two types of global engagement. We also construct a contingency model by confirming that firms’ local R&D activities greatly moderate firms’ international innovation process.

Suggested Citation

  • Jianghua Zhou & Zixu Liu & Jizhen Li & Gupeng Zhang, 2021. "Foreign equity, exporting and firm innovation: an emerging market perspective," The Journal of Technology Transfer, Springer, vol. 46(3), pages 606-628, June.
    • Handle: RePEc:kap:jtecht:v:46:y:2021:i:3:d:10.1007_s10961-020-09813-6
    DOI: 10.1007/s10961-020-09813-6
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    More about this item

    Keywords

    Foreign equity; Exporting; Local R&D effort; Academic collaboration; Innovation performance;
    All these keywords.

    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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