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Do Exporting Firms in the People’s Republic of China Innovate?

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  • Wignaraja, Ganeshan

    (Asian Development Bank Institute)

Abstract

This paper assesses factors driving firm-level export performance in Asia’s super exporter—The People’s Republic of China (PRC). While early studies suggested that innovation was important, there has been little research on opening up the black box of technology at firm-level in the PRC, the author undertakes econometric analysis of innovation, learning, and exporting in automobiles and electronics firms in the PRC using a large-scale dataset to identify the most appropriate innovation proxy. Drawing on recent literature on innovation and learning in developing countries, it tests two alternative proxies: (i) a technology index (TI) to capture a variety of minor activities involved in using imported technologies efficiently; and (ii) the research and development (R&D)-to-sales ratio, which represents formal technological efforts to create new products and processes, often at world frontiers.

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Bibliographic Info

Paper provided by Asian Development Bank Institute in its series ADBI Working Papers with number 365.

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Length: 21 pages
Date of creation: 04 Jul 2012
Date of revision:
Handle: RePEc:ris:adbiwp:0365

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Keywords: prc; innovation; automobiles; electronics;

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References

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  1. Dani Rodrik, 2006. "What's So Special about China's Exports?," NBER Working Papers 11947, National Bureau of Economic Research, Inc.
  2. Dijk, van M., 2001. "The Determinants of Export Performance in Developing Countries: The Case of Indonesian Manufacturing," Working Papers 02.01, Eindhoven Center for Innovation Studies.
  3. Motohashi, Kazuyuki & Yun, Xiao, 2007. "China's innovation system reform and growing industry and science linkages," Research Policy, Elsevier, vol. 36(8), pages 1251-1260, October.
  4. Mark J. Melitz, 2002. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," NBER Working Papers 8881, National Bureau of Economic Research, Inc.
  5. Richard Nelson, 2008. "Economic Development from the Perspective of Evolutionary Economic Theory," Oxford Development Studies, Taylor & Francis Journals, vol. 36(1), pages 9-21.
  6. Motohashi, Kazuyuki & Yuan, Yuan, 2010. "Productivity impact of technology spillover from multinationals to local firms: Comparing China's automobile and electronics industries," Research Policy, Elsevier, vol. 39(6), pages 790-798, July.
  7. Metcalfe, J S, 1994. "Evolutionary Economics and Technology Policy," Economic Journal, Royal Economic Society, vol. 104(425), pages 931-44, July.
  8. Yeaple, Stephen & Helpman, Elhanan & Melitz, Marc, 2004. "Export versus FDI with Heterogeneous Firms," Scholarly Articles 3229098, Harvard University Department of Economics.
  9. Dani Rodrik, 2006. "What’s So Special about China’s Exports?," Working Papers id:410, eSocialSciences.
  10. Correa, Paulo & Dayoub, Mariam & Francisco, Manuela, 2007. "Identifying supply-side constraints to export performance in Ecuador : an exercise with Investment Climate Survey data," Policy Research Working Paper Series 4179, The World Bank.
  11. Glejser, Herbert & Jacquemin, Alexis & Petit, Jean, 1980. "Exports in an Imperfect Competition Framework: An Analysis of 1,446 Exporters," The Quarterly Journal of Economics, MIT Press, vol. 94(3), pages 507-24, May.
  12. Rasiah, Rajah, 2003. "Foreign ownership, technology and electronics exports from Malaysia and Thailand," Journal of Asian Economics, Elsevier, vol. 14(5), pages 785-811, October.
  13. Grossman, Gene M. & Helpman, Elhanan, 1995. "Technology and trade," Handbook of International Economics, in: G. M. Grossman & K. Rogoff (ed.), Handbook of International Economics, edition 1, volume 3, chapter 25, pages 1279-1337 Elsevier.
  14. Wignaraja, Ganeshan, 2008. "Foreign ownership, technological capabilities and clothing exports in Sri Lanka," Journal of Asian Economics, Elsevier, vol. 19(1), pages 29-39, February.
  15. Ganeshan Wignaraja, 2002. "Firm Size, Technological Capabilities and Market-oriented Policies in Mauritius," Oxford Development Studies, Taylor & Francis Journals, vol. 30(1), pages 87-104.
  16. Iammarino, Simona & Padilla-Pérez, Ramon & von Tunzelmann, Nick, 2008. "Technological Capabilities and Global-Local Interactions: The Electronics Industry in Two Mexican Regions," World Development, Elsevier, vol. 36(10), pages 1980-2003, October.
  17. Jun Du & Sourafel Girma, 2007. "Finance and Firm Export in China," Kyklos, Wiley Blackwell, vol. 60(1), pages 37-54, 02.
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