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Technological Capability and Firm Efficiency in Taiwan (China)


  • Aw, B.Y.
  • Batra, G.


This article highlights the importance of firms' own investments in technological capability. Recent research on the nature and extent of technical change in developing countries shows that the accumulation of technological capability should be treated not as a by-product but as an activity in its own right. This research also points to the critical role of firms and indicates that firm-level efforts to obtain international knowledge may have higher payoffs when accompanied by complementary investments in the development of in-house technological capabilities.

Suggested Citation

  • Aw, B.Y. & Batra, G., 1998. "Technological Capability and Firm Efficiency in Taiwan (China)," Papers 1, Pennsylvania State - Department of Economics.
  • Handle: RePEc:fth:pensta:1

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    References listed on IDEAS

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    3. Kwiatkowski, Denis & Phillips, Peter C. B. & Schmidt, Peter & Shin, Yongcheol, 1992. "Testing the null hypothesis of stationarity against the alternative of a unit root : How sure are we that economic time series have a unit root?," Journal of Econometrics, Elsevier, vol. 54(1-3), pages 159-178.
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    Cited by:

    1. Brown, Flor & Domínguez Villalobos, Lilia, 2004. "Measuring technological capabilities in Mexican industry," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    2. repec:pal:jorsoc:v:54:y:2003:i:10:d:10.1057_palgrave.jors.2601609 is not listed on IDEAS
    3. Ricardo A. López, 2009. "Do Firms Increase Productivity in Order to Become Exporters?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 71(5), pages 621-642, October.
    4. Sonali Deraniyagala & Ben Fine, 2000. "New Trade Theory Versus Old Trade Policy: A Continuing Enigma," Working Papers 102, Department of Economics, SOAS, University of London, UK.
    5. Ortega, María José Ruiz, 2010. "Competitive strategies and firm performance: Technological capabilities' moderating roles," Journal of Business Research, Elsevier, vol. 63(12), pages 1273-1281, December.

    More about this item



    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes


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