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Innovation Strategy and Total Factor Productivity Growth : Micro Evidence from Taiwanese Manufacturing Firms

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Author Info
Chia Lin, CHANG (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES))
Stephane, ROBIN (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES) and CRESGE-LABORES-France)

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Abstract

This paper investigates the relationship between firmsÕ innovation practices and performance in Taiwan. Using a panel of 4000 firms, we examine the effects of importing technology (versus doing R&D) on Total Factor Porductivity (TFP) growth. The relationship between these two innovation strategies is also explored. We find that R&D strongly contributes to the growth of TFP, whereas the importation of technology is only weakly significant, which makes it difficult to qualify the type of relationship (complementarity or substitutability) that exists between the two innovation strategies.

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Publisher Info
Paper 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 2004007.

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Length: 32
Date of creation: 01 Mar 2004
Date of revision:
Handle: RePEc:ctl:louvir:2004007

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Related research
Keywords: Importation of technology; Newly industrializzed countries; Productivity growth; Firm-level panel data; Manufacturing industries;

Find related papers by JEL classification:
D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor Productivity; Capacity
L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
F20 - International Economics - - International Factor Movements and International Business - - - General
C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data

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  1. Lall, Sanjaya, 1983. "Determinants of R&D in an LDC : The Indian engineering industry," Economics Letters, Elsevier, vol. 13(4), pages 379-383. [Downloadable!] (restricted)
  2. Nestor Terleckyj, 1980. "Direct and Indirect Effects of Industrial Research and Development on the Productivity Growth of Industries," NBER Chapters, in: New Developments in Productivity Measurement, pages 357-386 National Bureau of Economic Research, Inc. [Downloadable!]
  3. Branstetter, Lee & Sakakibara, Mariko, 1998. "Japanese Research Consortia: A Microeconometric Analysis of Industrial Policy," Journal of Industrial Economics, Blackwell Publishing, vol. 46(2), pages 207-33, June. [Downloadable!] (restricted)
  4. Susan Athey & Scott Stern, 1998. "An Empirical Framework for Testing Theories About Complimentarity in Organizational Design," NBER Working Papers 6600, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  5. Link, Albert N, 1981. "Basic Research and Productivity Increase in Manufacturing: Additional Evidence," American Economic Review, American Economic Association, vol. 71(5), pages 1111-12, December. [Downloadable!] (restricted)
  6. Zvi Griliches & Jacques Mairesse, 1981. "Productivity and R and D at the Firm Level," NBER Working Papers 0826, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  7. Bee Yan Aw & Sukkyun Chung & Mark J. Roberts, 1998. "Productivity and the Decision to Export: Micro Evidence from Taiwan and South Korea," NBER Working Papers 6558, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  8. Arora, Ashish & Gambardella, Alfonso, 1990. "Complementarity and External Linkages: The Strategies of the Large Firms in Biotechnology," Journal of Industrial Economics, Blackwell Publishing, vol. 38(4), pages 361-79, June. [Downloadable!] (restricted)
  9. Zvi Griliches & Frank R. Lichtenberg, 1984. "R&D and Productivity Growth at the Industry Level: Is There Still a Relationship?," NBER Chapters, in: R & D, Patents, and Productivity, pages 465-502 National Bureau of Economic Research, Inc. [Downloadable!]
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  10. Goto, Akira & Suzuki, Kazuyuki, 1989. "R&D Capital, Rate of Return on R&D Investment and Spillover of R&D in Japanese Manufacturing Industries," The Review of Economics and Statistics, MIT Press, vol. 71(4), pages 555-64, November. [Downloadable!] (restricted)
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