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The Innovativeness of Foreign Firms in China

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Author Info
Urem, Branka () (UNU-MERIT)
Alcorta, Ludovico () (Maastricht School of Management)
An, Tongliang () (School of Business, Nanjing University)
Abstract

This paper studies the relationship between foreign ownership and innovations of high novelty in context of advanced developing countries. We develop hypotheses about a direct relationship in terms of two dimensions, propensity and intensity of innovations of high novelty, and a contingency hypothesis about the moderating impact of R&D internationalisation on the relationship with propensity. The analysis is based on innovation survey data on manufacturing firms from Jiangsu province of China. Hypotheses are tested using non-parametric methods. We find that foreign firms do not have a higher propensity of innovations of high novelty, not even when they engage in formal R&D. However, the evidence suggests that foreign firms have a higher intensity of innovations of high novelty than domestic firms.

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File URL: http://www.merit.unu.edu/publications/wppdf/2008/wp2008-019.pdf
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Publisher Info
Paper provided by United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology in its series UNU-MERIT Working Paper Series with number 019.

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Date of creation: 2008
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Handle: RePEc:dgr:unumer:2008019

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Related research
Keywords: multinational enterprises; foreign firms; innovation; manufacturing; China;

Find related papers by JEL classification:
F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives
O32 - Economic Development, Technological Change, and Growth - - Technological Change - - - Management of Technological Innovation and R&D

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This page was last updated on 2009-12-3.

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