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Technology diversity and development: Evidence from China's industrial enterprises

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  • Fisher-Vanden, Karen
  • Jefferson, Gary H.

Abstract

This paper investigates the phenomenon of individual firms simultaneously developing and adopting technical change with varying factor biases. Firms in a large panel of Chinese industrial enterprise data exhibit three channels of technical change, each associated with different patterns of firm-level factor bias and strategic purpose. The neo-classical growth process, associated with Harrod-neutral technical change, drives capital deepening. In-house R&D is found to be robustly labor- and material-using and capital- and energy-saving thereby capitalizing on China's comparative advantage. Finally, the purchase of imported technologies, which are comparatively capital-using, focuses on new product development. These diversified channels of technical change reveal a pattern of developing country technical change that is far more diversified than that suggested by the conventional growth literature. Journal of Comparative Economics 36 (4) (2008) 658-672.

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  • Fisher-Vanden, Karen & Jefferson, Gary H., 2008. "Technology diversity and development: Evidence from China's industrial enterprises," Journal of Comparative Economics, Elsevier, vol. 36(4), pages 658-672, December.
    • Handle: RePEc:eee:jcecon:v:36:y:2008:i:4:p:658-672
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