The impact of innovation intensity, scope, and spillovers on sales growth in Chinese firms
We investigate the relationship between innovation and sales growth of firms in China. Innovation theories suggest firms create the technological knowledge needed to have market impact with their products and drive sales growth in different ways. These include: (1) through firms’ overall innovation intensity, (2) through decisions on innovation scope (depth vs. diversity), and (3) through knowledge spillovers from technological neighbors. Little research exists on how effective these approaches are for emerging market firms in pursuit of growth. To address this, we integrate and test the effects of these different knowledge creation mechanisms using data from Chinese firms over a five-year period. Findings show that innovation intensity and knowledge spillovers positively impact sales growth. We also develop and test a model capturing the non-linear impact of innovation scope. As predicted, we find a U-shaped relationship for depth of innovation and an inverted U-shaped relationship for diversity of innovation. Copyright Springer Science+Business Media New York 2014
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 31 (2014)
Issue (Month): 1 (March)
|Contact details of provider:|| Postal: |
Web page: http://www.springerlink.com/link.asp?id=106589
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bradley, Michael & Jarrell, Gregg A & Kim, E Han, 1984. " On the Existence of an Optimal Capital Structure: Theory and Evidence," Journal of Finance, American Finance Association, vol. 39(3), pages 857-78, July.
- De Bondt, Raymond, 1997. "Spillovers and innovative activities," International Journal of Industrial Organization, Elsevier, vol. 15(1), pages 1-28, February.
- Jonathan Michie, 1998. "Introduction. The Internationalisation of the Innovation Process," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 5(3), pages 261-277.
- Malerba, Franco & Orsenigo, Luigi, 1997. "Technological Regimes and Sectoral Patterns of Innovative Activities," Industrial and Corporate Change, Oxford University Press, vol. 6(1), pages 83-117.
- Kenneth A. Froot & David S. Scharfstein & Jeremy C. Stein, 1994. "A Framework For Risk Management," Journal of Applied Corporate Finance, Morgan Stanley, vol. 7(3), pages 22-33.
- Masaaki Kotabe & Denise Dunlap-Hinkler & Ronaldo Parente & Harsh A Mishra, 2007. "Determinants of cross-national knowledge transfer and its effect on firm innovation," Journal of International Business Studies, Palgrave Macmillan, vol. 38(2), pages 259-282, March.
- Hu, Albert Guangzhou & Jefferson, Gary H., 2009. "A great wall of patents: What is behind China's recent patent explosion?," Journal of Development Economics, Elsevier, vol. 90(1), pages 57-68, September.
- Eric von Hippel, 1998. "Economics of Product Development by Users: The Impact of "Sticky" Local Information," Management Science, INFORMS, vol. 44(5), pages 629-644, May.
- Bruno Crepon & Emmanuel Duguet & Jacques Mairesse, 1998.
"Research, Innovation, and Productivity: An Econometric Analysis at the Firm Level,"
NBER Working Papers
6696, National Bureau of Economic Research, Inc.
- Bruno Crepon & Emmanuel Duguet & Jacques Mairesse, 1998. "Research, Innovation And Productivity: An Econometric Analysis At The Firm Level," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 7(2), pages 115-158.
- Bruno Crépon & Emmanuel Duguet & Jacques Mairesse, 1998. "Research, Innovation and Productivity : An Econometric Analysis at the Firm Level," Working Papers 98-33, Centre de Recherche en Economie et Statistique.
- Whetten, David A., 2009. "An Examination of the Interface between Context and Theory Applied to the Study of Chinese Organizations," Management and Organization Review, Cambridge University Press, vol. 5(01), pages 29-56, March.
- Mu, Qing & Lee, Keun, 2005. "Knowledge diffusion, market segmentation and technological catch-up: The case of the telecommunication industry in China," Research Policy, Elsevier, vol. 34(6), pages 759-783, August.
- Kim, S Ran, 1998. "The Korean System of Innovation and the Semiconductor Industry: A Governance Perspective," Industrial and Corporate Change, Oxford University Press, vol. 7(2), pages 275-309, June.
- Hausman, Jerry A, 1978.
"Specification Tests in Econometrics,"
Econometric Society, vol. 46(6), pages 1251-71, November.
- Auh, Seigyoung & Menguc, Bulent, 2005. "Balancing exploration and exploitation: The moderating role of competitive intensity," Journal of Business Research, Elsevier, vol. 58(12), pages 1652-1661, December.
- Li, Jing & Zhou, Changhui, 2008. "Dual-edged tools of trade: How international joint ventures help and hinder capability building of Chinese firms," Journal of World Business, Elsevier, vol. 43(4), pages 463-474, October.
- Paul Romer, 1989.
"Endogenous Technological Change,"
NBER Working Papers
3210, National Bureau of Economic Research, Inc.
- Park, Byung Il & Ghauri, Pervez N., 2011. "Key factors affecting acquisition of technological capabilities from foreign acquiring firms by small and medium sized local firms," Journal of World Business, Elsevier, vol. 46(1), pages 116-125, January.
- Suzuki, Jun & Kodama, Fumio, 2004. "Technological diversity of persistent innovators in Japan: Two case studies of large Japanese firms," Research Policy, Elsevier, vol. 33(3), pages 531-549, April.
- Marie Carpenter & William Lazonick & Mary O'Sullivan, 2003. "The stock market and innovative capability in the New Economy: the optical networking industry," Industrial and Corporate Change, Oxford University Press, vol. 12(5), pages 963-1034, October.
- Stephen Redding, 2002.
"Path Dependence, Endogenous Innovation, and Growth,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 43(4), pages 1215-1248, November.
- Stephen Redding, 1999. "Path Dependence, Endogenous Innovation and Growth," CEP Discussion Papers dp0424, Centre for Economic Performance, LSE.
- Stephen Redding, 2002. "Path dependence, endogenous innovation, and growth," LSE Research Online Documents on Economics 208, London School of Economics and Political Science, LSE Library.
- Barry L. Bayus & Gary Erickson & Robert Jacobson, 2003. "The Financial Rewards of New Product Introductions in the Personal Computer Industry," Management Science, INFORMS, vol. 49(2), pages 197-210, February.
- Jong-il Kim, 2002. "Total Factor Productivity Growth in East Asia: Implications for the Future," Asian Economic Papers, MIT Press, vol. 1(2), pages 50-70.
- Garcia-Vega, Maria, 2006. "Does technological diversification promote innovation?: An empirical analysis for European firms," Research Policy, Elsevier, vol. 35(2), pages 230-246, March.
- Michael Fung & William Chow†, 2003. "Identification of technological structures using patent statistics," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 12(4), pages 293-313.
- Richard R. Nelson, 2003.
"The Market Economy, and the Scientific Commons,"
LEM Papers Series
2003/24, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
- Choi, Suk Bong & Lee, Soo Hee & Williams, Christopher, 2011. "Ownership and firm innovation in a transition economy: Evidence from China," Research Policy, Elsevier, vol. 40(3), pages 441-452, April.
- Dosi, Giovanni, 1988. "Sources, Procedures, and Microeconomic Effects of Innovation," Journal of Economic Literature, American Economic Association, vol. 26(3), pages 1120-71, September.
- Breschi, Stefano & Malerba, Franco & Orsenigo, Luigi, 2000. "Technological Regimes and Schumpeterian Patterns of Innovation," Economic Journal, Royal Economic Society, vol. 110(463), pages 388-410, April.
- Breusch, T S & Pagan, A R, 1980. "The Lagrange Multiplier Test and Its Applications to Model Specification in Econometrics," Review of Economic Studies, Wiley Blackwell, vol. 47(1), pages 239-53, January.
- Dinopoulos, Elias & Thompson, Peter, 1998. " Schumpeterian Growth without Scale Effects," Journal of Economic Growth, Springer, vol. 3(4), pages 313-35, December.
- Lee Fleming, 2001. "Recombinant Uncertainty in Technological Search," Management Science, INFORMS, vol. 47(1), pages 117-132, January.
- Branstetter, Lee G., 2001. "Are knowledge spillovers international or intranational in scope?: Microeconometric evidence from the U.S. and Japan," Journal of International Economics, Elsevier, vol. 53(1), pages 53-79, February.
- Liu, Xielin & White, Steven, 2001. "Comparing innovation systems: a framework and application to China's transitional context," Research Policy, Elsevier, vol. 30(7), pages 1091-1114, August.
- repec:fth:inseep:9833 is not listed on IDEAS
- Hu, Albert Guangzhou & Jefferson, Gary H., 2004. "Returns to research and development in Chinese industry: Evidence from state-owned enterprises in Beijing," China Economic Review, Elsevier, vol. 15(1), pages 86-107, January.
When requesting a correction, please mention this item's handle: RePEc:kap:asiapa:v:31:y:2014:i:1:p:25-46. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.