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An Investigation of Firm-Level R&D Capabilities in East Asia

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  • Gary H. Jefferson

    ()

  • Zhong Kaifeng

Abstract

This paper uses a survey of 1,826 firms distributed over ten East Asian metropolitan areas – Jakarta, Kuala Lumpur, Manila, Seoul, and five Chinese cities – to investigate the sources of firm-level R&D capabilities. The analysis identifies the impact of 23 survey variables, classified by openness, human capital, R&D network, and institutional quality, on the efficiency of firm R&D operations and on overall firm performance. These firmlevel results are used to construct composite measures R&D capabilities for each of the 10 metropolitan economies. Using the firm samples, returns to R&D are also estimated for each of the metropolitan areas. Where cross economy comparisons are possible, as they are for Seoul and the five Chinese cities, we find a strong association between overall R&D productivity in these city economies and the composite measures of citywide R&D capabilities. In particular, high composite measures in Seoul and Shanghai are associated with high returns to R&D in those cities. The large productivitywage gaps in the Chinese cities appear to be attracting large and visible investment in R&D operations. Whether R&D wages rise to narrow this gap or investment and technology flows continue to sustain the gap will substantially affect the pattern of R&D operations within the Asian region.

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File URL: http://www.wdi.umich.edu/files/Publications/WorkingPapers/wp583.pdf
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Bibliographic Info

Paper provided by William Davidson Institute at the University of Michigan in its series William Davidson Institute Working Papers Series with number 583.

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Length: 49 pages
Date of creation: 30 Sep 2002
Date of revision:
Handle: RePEc:wdi:papers:2003-583

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Keywords: Research and development; Technology transfer; East Asia;

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References

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  1. Paul M Romer, 1999. "Endogenous Technological Change," Levine's Working Paper Archive 2135, David K. Levine.
  2. Goyal, Sanjeev & Moraga-Gonzalez, Jose Luis, 2001. "R&D Networks," RAND Journal of Economics, The RAND Corporation, vol. 32(4), pages 686-707, Winter.
  3. Ajay Agrawal & Iain M. Cockburn, 2002. "University Research, Industrial R&D, and the Anchor Tenant Hypothesis," NBER Working Papers 9212, National Bureau of Economic Research, Inc.
  4. Mankiw, N Gregory & Romer, David & Weil, David N, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, MIT Press, vol. 107(2), pages 407-37, May.
  5. Hill, Hal, 2001. "Technology and Innovation in Developing East Asia: An interpretive Survey," Departmental Working Papers 2001-11, The Australian National University, Arndt-Corden Department of Economics.
  6. Djankov, Simeon & Murrell, Peter, 2002. "Enterprise Restructuring in Transition: A Quantitative Survey," CEPR Discussion Papers 3319, C.E.P.R. Discussion Papers.
  7. Baumol, William J & Wolff, Edward N, 1988. "Productivity Growth, Convergence, and Welfare: Reply," American Economic Review, American Economic Association, vol. 78(5), pages 1155-59, December.
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Cited by:
  1. Yusuf, Shahid & Nabeshima, Kaoru, 2006. "Two decades of reform : the changing organization dynamics of Chinese industrial firms," Policy Research Working Paper Series 3806, The World Bank.

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