Knowledge sourcing and firm performance in an industrializing economy: The case of Taiwan (1992-2003)
AbstractWe examine the impact of R&D and technology imports on firm performance in Taiwan’s manufacturing industry in a policy context of industrial upgrading. To do so, we estimate a Translog production function on two panels (covering 1992-1995 and 1997-2003), using stochastic frontier models. We find that the effects of both knowledge inputs become significant in a larger number of industries in the second panel. These results suggest that the policies encouraging innovation implemented from 1991 onwards paid off in the second half of the 1990s, with innovation driving firm sales. In traditional industries, the effect of innovation can be interpreted as an effort to catch up with the global technology frontier. In the electronics and high-technology industries, it rather testifies of the emergence of a new domain of specialization for Taiwan – which was largely enabled by the aforementioned innovation policies.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 27913.
Date of creation: 01 Dec 2010
Date of revision:
Manufacturing Industries; Newly Industrialized Countries; Technology Imports - Stochastic Frontier Estimation.;
Other versions of this item:
- Chia-Lin Chang & Stéphane Robin, 2012. "Knowledge sourcing and firm performance in an industrializing economy: the case of Taiwan (1992–2003)," Empirical Economics, Springer, vol. 42(3), pages 947-986, June.
- L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
- L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-01-16 (All new papers)
- NEP-CSE-2011-01-16 (Economics of Strategic Management)
- NEP-EFF-2011-01-16 (Efficiency & Productivity)
- NEP-KNM-2011-01-16 (Knowledge Management & Knowledge Economy)
- NEP-TID-2011-01-16 (Technology & Industrial Dynamics)
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