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Does Innovation Matter for Chinese High-Tech Exports? A Firm-Level Analysis

Author

Listed:
  • Dahai Fu

    (UWA Business School, University of Western Australia, Crawley, WA6009, Australia)

  • Yanrui Wu

    (UWA Business School, University of Western Australia, Crawley, WA6009, Australia)

  • Yihong Tang

    (School of International Trade and Economics, Central University of Finance and Economics, Beijing 100081, China)

Abstract

This paper investigates the impact of innovation on export decisions of Chinese high-tech firms during the period of 2005¨C2007. Using a parametric, instrumental variable approach and a non-parametric matching method, we find that firm-level innovation efforts, measured by R&D spending and new product output, play only a minor role for domestic exporters. Foreign-invested firms dominate the high-tech exports but do not rely on indigenous innovation activities. These results demonstrate that the success of Chinese high-tech exports does not result from heavy R&D expenditure and technological progress. Moreover, different types of innovation measures show different impacts on the likelihood of exporting. The impacts of innovation on exporting vary widely across industries and Chinese regions.

Suggested Citation

  • Dahai Fu & Yanrui Wu & Yihong Tang, 2012. "Does Innovation Matter for Chinese High-Tech Exports? A Firm-Level Analysis," Frontiers of Economics in China-Selected Publications from Chinese Universities, Higher Education Press, vol. 7(2), pages 218-245, June.
  • Handle: RePEc:fec:journl:v:7:y:2012:i:2:p:218-245
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    File URL: http://journal.hep.com.cn/fec/EN/10.3868/s060-001-012-0010-9
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    Cited by:

    1. Zhao, Congyu & Luo, Ximing & Dong, Cong & Dong, Xiucheng, 2025. "Smart city policy and export technology sophistication: Investigating linkages and potential pathways," China Economic Review, Elsevier, vol. 89(C).
    2. Burak Sencer Atasoy, 2021. "The determinants of export sophistication: Does digitalization matter?," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(4), pages 5135-5159, October.
    3. Sevda Yapraklı & Fatma Kanca Kervan, 2024. "Basic Innovation Indicators Affecting Exports According to Technology Intensity: An Application Based on Time Series Analysis for Türkiye," EKOIST Journal of Econometrics and Statistics, Istanbul University, Faculty of Economics, vol. 0(41), pages 133-150, December.

    More about this item

    Keywords

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    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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