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The Role of Small Firms in China's Technology Development

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Author Info

  • Lundin, Nannan

    ()
    (Örebro University)

  • Sjöholm, Fredrik

    ()
    (Research Institute of Industrial Economics)

  • Ping, He

    (National Bureau of Statistics of China)

  • Qian, Jinchang

    (National Bureau of Statistics of China)

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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Bibliographic Info

Paper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 695.

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Length: 34 pages
Date of creation: 06 Feb 2007
Date of revision:
Handle: RePEc:hhs:iuiwop:0695

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

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References

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  1. Pakes, A. & Ericson, R., 1990. "Empirical Implications Of Alternative Models Of Firm Dynamics," Papers 594, Yale - Economic Growth Center.
  2. Hicks, Diana & Hegde, Deepak, 2005. "Highly innovative small firms in the markets for technology," Research Policy, Elsevier, vol. 34(5), pages 703-716, June.
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  7. Lambson, V.E., 1989. "Industry Evolution With Sunk Costs And Uncertian Market Conditions," Working papers 8904, Wisconsin Madison - Social Systems.
  8. Can Huang & Celeste Amorim & Joaquim Borges Gouveia & Mark Spinoglio & Augusto Medina, 2004. "Organization, Program and Structure: An Analysis of the Chinese Innovation Policy Framework," Working Papers de Economia (Economics Working Papers) 17, Departamento de Economia, Gestão e Engenharia Industrial, Universidade de Aveiro.
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Cited by:
  1. Elif Bascavusoglu-Moreau & Mustafa Colakoglu, 2011. "Impact of SME policies on innovation capabilities: The Turkish case," STPS Working Papers 1105, STPS - Science and Technology Policy Studies Center, Middle East Technical University, revised May 2011.
  2. Lundin, Nannan & Sjöholm, Fredrik & Ping, He & Qian, Jinchang, 2007. "Technology Development and Job Creation in China," Working Paper Series 697, Research Institute of Industrial Economics.
  3. Vinod Mishra & Russell Smyth, 2012. "Technological Change and Wages in China: Evidence From Matched Employer-Employee Data," Development Research Unit Working Paper Series 28-12, Monash University, Department of Economics.
  4. Urem, Branka & Alcorta, Ludovico & An, Tongliang, 2008. "The Innovativeness of Foreign Firms in China," MERIT Working Papers 019, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  5. Akcomak, Semih, 2009. "Incubators as Tools for Entrepreneurship Promotion in Developing Countries," MERIT Working Papers 054, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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