Doing R&D and Importing Technology : an Empirical Investigation on Taiwan’s manufacturing firms
AbstractThe objective of this paper is to identify the determinants of the decision to innovate in Taiwan. Three “innovation strategies” are considered : doing R&D only, importing technology only, and combining both. We estimate a Bivariate Probit on a panel of more than 27000 Taiwanese manufacturing firms observed from 1992 to 1995. Results suggest that the decision to R&D over the period was influenced by the prior changes in exportations at the industry level, whereas the decision to import technology is affected by the current changes. We identify a non-linear relationship between firm size and innovation. Moreover, older firms tend to innovate less, whereas market structure doesn’t affect the decision to innovate. These two results change when only high-tech industries are considered : the effect of firm’s age becomes insignificant, whereas a more concentrated market structure is shown to increase the probability to innovate.
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Bibliographic InfoPaper provided by Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) in its series Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) with number 2004006.
Date of creation: 01 Mar 2004
Date of revision:
R&D; importation of technology; market structure; technological opportunities; high-tech industries; panel data; bivariate Probit.;
Find related papers by JEL classification:
- L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
- L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-04-18 (All new papers)
- NEP-DEV-2004-04-04 (Development)
- NEP-ENT-2004-04-04 (Entrepreneurship)
- NEP-INO-2004-04-18 (Innovation)
- NEP-SEA-2004-04-04 (South East Asia)
- NEP-TID-2004-04-04 (Technology & Industrial Dynamics)
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