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The Role Of Small Firms In China’S Technology Development

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Author Info
Lundin, Nannan (European Institute of Japanese Studies)
Sjöholm, Fredrik () (European Institute of Japanese Studies)
Qian , Jinchang (National Bureau of Statistics of China)

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Abstract

Science & Technology (S&T) is high on the Chinese policy agenda but there are large uncertainties on the actual S&T development. For instance, previous studies tend to focus only on large and medium-sized enterprises (LMEs). The situation in Chinese small firms is far less explored. This paper aims to examine the role of S&T-based small firms. More precisely, we examine how much S&T that has been accounted for by small firms and how their S&T intensity differs across industries and ownership groups. We also analyze how various firm characteristics differ over size categories and S&T status. This study is based on newly processed micro level data provided by the National Bureau of Statistics with information on a large number of S&T indicators for small-, medium-, and large-sized manufacturing firms in China in 2000 and 2004. Our results suggest that small firms in Chinese S&T resemble their role in many other countries. They account for a comparably small share of total S&T and most small firms are not engaged in any S&T. However, those small firms that do engage in S&T tend to be more S&T intensive and have a higher output in terms of patents than larger Chinese S&T firms.

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Paper provided by The European Institute of Japanese Studies in its series EIJS Working Paper Series with number 227.

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Length: 35 pages
Date of creation: 15 Aug 2006
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Handle: RePEc:hhs:eijswp:0227

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Related research
Keywords: Technology; SMEs; China; S&T; R&D;

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Find related papers by JEL classification:
O30 - Economic Development, Technological Change, and Growth - - Technological Change - - - General
O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives
O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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