The Innovativeness of Foreign Firms in China
AbstractThis 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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Bibliographic InfoPaper 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.
Date of creation: 2008
Date of revision:
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Web page: http://www.merit.unu.edu
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; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- O32 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Management of Technological Innovation and R&D
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-04-12 (All new papers)
- NEP-CNA-2008-04-12 (China)
- NEP-DEV-2008-04-12 (Development)
- NEP-INO-2008-04-12 (Innovation)
- NEP-MIC-2008-04-12 (Microeconomics)
- NEP-TRA-2008-04-12 (Transition Economics)
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- Masso, Jaan & Roolaht, Tõnu & Varblane, Urmas, 2010.
"Foreign direct investment and innovation in Central and eastern Europe : evidence from Estonia,"
Bank of Estonia Working Papers
wp2010-05, Bank of Estonia, revised 14 Apr 2010.
- Jaan Masso & Tõnu Roolaht & Urmas Varblane, 2010. "Foreign Direct Investment And Innovation In Central And Eastern Europe: Evidence From Estonia," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 67, Faculty of Economics and Business Administration, University of Tartu (Estonia).
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