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Innovation Spillovers between Domestic Firms in China

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  • Go Yano
  • Maho Shiraishi

Abstract

This study aims to clarify whether innovation spillover effects can be observed between domestic firms in China. Using listed firms’ data and the R&D capital stock and R&D workers’ data at the industry level, we examined whether Chinese domestic firms benefited from spillovers from not only FDI firms but also from the other domestic firms in terms of their innovations. We found that state-owned enterprises benefited from the spillover effects on innovation input and output from the other domestic firms in China, whereas the spillover effects on the innovations of private firms (PEs) from the other domestic firms were conditional on their availability of financial resources and became larger as their available financial resources increased. Whether PEs could benefit from spillover effects through the human capital held by the other domestic firms was also conditional on their availability of financial resources.

Suggested Citation

  • Go Yano & Maho Shiraishi, 2022. "Innovation Spillovers between Domestic Firms in China," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 58(4), pages 1042-1060, March.
    • Handle: RePEc:mes:emfitr:v:58:y:2022:i:4:p:1042-1060
    DOI: 10.1080/1540496X.2021.1926978
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    Cited by:

    1. Becker, Bettina & Roper, Stephen & Vanino, Enrico, 2023. "Assessing innovation spillovers from publicly funded R&D and innovation support: Evidence from the UK," Technovation, Elsevier, vol. 128(C).

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