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Ownership, R&D and productivity change : assessing the catch-up in China’s high-tech industries

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  • Yu, J.

    (Vrije Universiteit Amsterdam, Faculteit der Economische Wetenschappen en Econometrie (Free University Amsterdam, Faculty of Economics Sciences, Business Administration and Economitrics)

  • Nijkamp, P.

Abstract

This study contributes to the debate on whether China’s domestic enterprises (DEs) have experienced a significant catch-up compared with foreign-funded enterprises (FFEs) in high-tech industries. Our paper tries to estimate a new set of capital stock and R&D capital stock by ownership for China’s high-tech industries. Then, using this newly constructed data set, it assesses the comparative productivity performance of state-owned enterprises (SOEs) (as the most important proxy for DEs) in high-tech industries from 1996 to 2006. The results show that SOEs as a whole have experienced an inverted U-shape trajectory of catch-up for 1996-2006, while those SOEs which originate from competitive industries tend to show a better performance. With respect to the technology catch-up, SOEs in particular are still lagging behind because of their failure to develop indigenous technology capabilities.

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Bibliographic Info

Paper provided by VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics in its series Serie Research Memoranda with number 0010.

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Date of creation: 2008
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Handle: RePEc:dgr:vuarem:2008-10

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Web page: http://www.feweb.vu.nl

Related research

Keywords: Productivity; R&D; Catch-up; Indigenous technology capability;

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  1. Christopher F Baum, 2006. "An Introduction to Modern Econometrics using Stata," Stata Press books, StataCorp LP, number imeus, March.
  2. Holz, Carsten A., 2006. "New capital estimates for China," China Economic Review, Elsevier, vol. 17(2), pages 142-185.
  3. Wang, L. & Szirmai, A.S., 2003. "Technological Inputs and Productivity Growth in China�s High-Tech Industries," Eindhoven Center for Innovation Studies (ECIS) working paper series 03.27, Eindhoven Center for Innovation Studies (ECIS).
  4. Liu, Xiaohui & Buck, Trevor, 2007. "Innovation performance and channels for international technology spillovers: Evidence from Chinese high-tech industries," Research Policy, Elsevier, vol. 36(3), pages 355-366, April.
  5. Mattlin, Mikael, 2007. "The Chinese government's new approach to ownership and financial control of strategic state-owned enterprises," BOFIT Discussion Papers 10/2007, Bank of Finland, Institute for Economies in Transition.
  6. Jonathan Story, 2005. "China: Workshop of the world?," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 3(2), pages 95-109.
  7. Lutao Ning, 2007. "Economic liberalisation for high-tech industry development? Lessons from China's response in developing the ICT manufacturing sector compared with the strategies of Korea and Taiwan," Journal of Development Studies, Taylor & Francis Journals, vol. 43(3), pages 562-587.
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