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Manufacturing dynamics and spillovers: The case of Guangdong Province and Hong Kong, Macau, and Taiwan (HKMT)

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  • Huang, Can
  • Sharif, Naubahar

Abstract

In this paper we characterize the extent of economic integration between Guangdong, Hong Kong, Macau, and Taiwan (HKMT). We do not find, for the period of 1999-2003, consistent evidence that economic activity on the part of HKMT-funded companies contributed to productivity growth in Guangdong domestic manufacturing firms. Furthermore, HKMT-funded companies were less active than Guangdong domestic companies in pursuing research and development (R&D) and innovation activities. Given that HKMT-funded companies in Guangdong are dominated by companies from Hong Kong, we end by linking our results to a discussion of recent innovation policy actions, both in Hong Kong SAR and Guangdong province.

Suggested Citation

  • Huang, Can & Sharif, Naubahar, 2009. "Manufacturing dynamics and spillovers: The case of Guangdong Province and Hong Kong, Macau, and Taiwan (HKMT)," Research Policy, Elsevier, vol. 38(5), pages 813-828, June.
    • Handle: RePEc:eee:respol:v:38:y:2009:i:5:p:813-828
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    2. Chen Fang & Pierre Mohnen, 2010. "FDI, R&D and Innovation Output in the Chinese Automobile Industry," Palgrave Macmillan Books, in: Xiaolan Fu & Luc Soete (ed.), The Rise of Technological Power in the South, chapter 10, pages 203-220, Palgrave Macmillan.
    3. Sharif, Naubahar & Huang, Can, 2012. "Innovation strategy, firm survival and relocation: The case of Hong Kong-owned manufacturing in Guangdong Province, China," Research Policy, Elsevier, vol. 41(1), pages 69-78.
    4. Wang, Jue, 2018. "Innovation and government intervention: A comparison of Singapore and Hong Kong," Research Policy, Elsevier, vol. 47(2), pages 399-412.
    5. Ha, Yoo Jung & Giroud, Axèle, 2015. "Competence-creating subsidiaries and FDI technology spillovers," International Business Review, Elsevier, vol. 24(4), pages 605-614.
    6. Hongzhong Fan & Shi He & Yum K. Kwan, 2020. "FDI Backward Spillovers in China: What a Meta-Analysis Tells Us?," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 56(1), pages 86-105, January.
    7. Yao Yao & Ruhul Salim, 2020. "Crowds in or crowds out? The effect of foreign direct investment on domestic investment in Chinese cities," Empirical Economics, Springer, vol. 58(5), pages 2129-2154, May.
    8. Wang, Jue & Chandra, Kevin & Du, Coco & Ding, Weizhen & Wu, Xun, 2021. "Assessing the Potential of Cross-border regional innovation Systems:A case study of the Hong Kong -Shenzhen region," Technology in Society, Elsevier, vol. 65(C).

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