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Doing R&D and/or Importing Technologies: The Critical Importance of Firm Size in Taiwan’s Manufacturing Industries

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  • Chialin Chang
  • Stéphane Robin

Abstract

We analyze the relationship between firm size and innovation inputs in Taiwan. Two inputs are considered: R&D and technology imports. Building on an existing theoretical framework, we test this relationship by estimating bivariate Tobit models in twenty 2-digit industries, using a panel of 27,754 firms observed from 1992 to 1995. We find that, in all industries, R&D intensity and/or technology imports intensity depend strongly on firm size, following an “inverted-U” pattern. Moreover, we find that most industries are only “mildly Schumpeterian”. Finally, our results provide some empirical evidence for complementarity between R&D and technology imports in the innovation process. Copyright Springer Science+Business Media, LLC 2006

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  • Chialin Chang & Stéphane Robin, 2006. "Doing R&D and/or Importing Technologies: The Critical Importance of Firm Size in Taiwan’s Manufacturing Industries," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 29(3), pages 253-278, November.
    • Handle: RePEc:kap:revind:v:29:y:2006:i:3:p:253-278
    DOI: 10.1007/s11151-006-9114-8
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    Cited by:

    1. Chia-Lin Chang & Michael McAleer & Ju-Ting Tang, 2018. "Joint and Cross-Border Patents as Proxies for International Technology Diffusion," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 15(02), pages 1-29, April.
    2. Glynn T. Tonsor & Ted C. Schroeder & Joost M. E. Pennings, 2009. "Factors Impacting Food Safety Risk Perceptions," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(3), pages 625-644, September.
    3. Shi, Xing & Wu, Yanrui, 2017. "The effect of internal and external factors on innovative behaviour of Chinese manufacturing firms," China Economic Review, Elsevier, vol. 46(S), pages 50-64.
    4. Robin, Stéphane & Schubert, Torben, 2013. "Cooperation with public research institutions and success in innovation: Evidence from France and Germany," Research Policy, Elsevier, vol. 42(1), pages 149-166.
    5. Chang, Chia-Lin & Hsu, Hui-Kuang & McAleer, Michael, 2014. "The impact of China on stock returns and volatility in the Taiwan tourism industry," The North American Journal of Economics and Finance, Elsevier, vol. 29(C), pages 381-401.
    6. Bryan P. Schmutz & Rexford E. Santerre, 2013. "Examining The Link Between Cash Flow, Market Value, And Research And Development Investment Spending In The Medical Device Industry," Health Economics, John Wiley & Sons, Ltd., vol. 22(2), pages 157-167, February.
    7. Chia-Lin Chang & Michael McAleer & Ju-Ting Tang, "undated". "International Technology Diffusion of Joint and Cross-border Patents (Revised version)," Documentos de Trabajo del ICAE 2015-06, Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales, Instituto Complutense de Análisis Económico, revised May 2015.
    8. Stoetzer, Matthias-Wolfgang & Pfeil, Silko & Kaps, Katharina & Sauer, Thomas, 2011. "Regional dispersion of cooperation activities as success factor of innovation oriented SME," Jena Contributions to Economic Research 2011,4, Ernst-Abbe-Hochschule Jena – University of Applied Sciences, Department of Business Administration.
    9. Zuniga, Pluvia & Crespi, Gustavo, 2013. "Innovation strategies and employment in Latin American firms," Structural Change and Economic Dynamics, Elsevier, vol. 24(C), pages 1-17.
    10. Chia-Lin Chang & Michael McAleer & Ju-Ting Tang, 2013. "International Technology Diffusion of Joint and Cross-border Patents," Tinbergen Institute Discussion Papers 13-098/III, Tinbergen Institute.
    11. Chang, Chia-Lin & Robin, Stéphane, 2008. "Public policy, innovation and total factor productivity: An application to Taiwan's manufacturing industry," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 79(3), pages 352-367.
    12. Torben Schubert, 2010. "Marketing and Organisational Innovations in Entrepreneurial Innovation Processes and their Relation to Market Structure and Firm Characteristics," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 36(2), pages 189-212, March.
    13. Yu, Liping & Li, Huiyang & Wang, Zuogong & Duan, Yunlong, 2019. "Technology imports and self-innovation in the context of innovation quality," International Journal of Production Economics, Elsevier, vol. 214(C), pages 44-52.
    14. Yanrui Wu, 2012. "R&D Behaviour in Chinese Firms," Economics Discussion / Working Papers 12-26, The University of Western Australia, Department of Economics.
    15. Sami SAAFI & Fouzi SBOUI, 2011. "LES OPPORTUNITES DES INVESTISSEMENTS DIRECTS ETRANGERS LES OPPORTUNITES DES INVESTISSEMENTS DIRECTS ETRANGERS, DIFFUSION TECHNOLOGIQUE ET DEMANDE DE LA MAIN-D’OEUVRE PAR QUALIFICATION DES INDUSTRIES T," Working Papers 240, Laboratoire de Recherche sur l'Industrie et l'Innovation. ULCO / Research Unit on Industry and Innovation.
    16. Tran Thi Hue, 2019. "The determinants of innovation in Vietnamese manufacturing firms: an empirical analysis using a technology–organization–environment framework," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 9(3), pages 247-267, September.

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    More about this item

    Keywords

    firm size; inter-industry comparisons; R&D; technology imports; O31; O33; L25; L60;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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