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The Role of Small Firms in China's Technology Development

Author

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  • Lundin, Nannan

    (Örebro University)

  • Sjöholm, Fredrik

    (Research Institute of Industrial Economics)

  • Ping, He

    (National Bureau of Statistics of China)

  • Qian, Jinchang

    (National Bureau of Statistics of China)

Abstract

Science & Technology (S&T) is high on the Chinese policy agenda but there are large uncertainties on the actual S&T development. For instance, previous studies tend to focus only on large and medium-sized enterprises (LMEs). The situation in Chinese small firms is far less explored. This paper aims to examine the role of S&T-based small firms. More precisely, we examine how much S&T that has been accounted for by small firms and how their S&T intensity differs across industries and ownership groups. We also analyze how various firm characteristics differ over size categories and S&T status. This study is based on newly processed micro level data provided by the National Bureau of Statistics with information on a large number of S&T indicators for small-, medium-, and large-sized manufacturing firms in China in 2000 and 2004. Our results suggest that small firms in Chinese S&T resemble their role in many other countries. They account for a comparably small share of total S&T and most small firms are not engaged in any S&T. However, those small firms that do engage in S&T tend to be more S&T intensive and have a higher output in terms of patents than larger Chinese S&T firms.

Suggested Citation

  • Lundin, Nannan & Sjöholm, Fredrik & Ping, He & Qian, Jinchang, 2007. "The Role of Small Firms in China's Technology Development," Working Paper Series 695, Research Institute of Industrial Economics.
    • Handle: RePEc:hhs:iuiwop:0695
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    Cited by:

    1. Sumanjeet Singh, 2018. "The State of IP protection, Exploitation and Valuation: Evidence from Select Indian Micro, Small and Medium Enterprises (MSMEs)," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 4(2), pages 159-176, July.
    2. Elif Bascavusoglu-Moreau & Mustafa Colakoglu, 2011. "Impact of SME policies on innovation capabilities: The Turkish case," STPS Working Papers 1105, STPS - Science and Technology Policy Studies Center, Middle East Technical University, revised May 2011.
    3. Urem, Branka & Alcorta, Ludovico & An, Tongliang, 2008. "The Innovativeness of Foreign Firms in China," MERIT Working Papers 2008-019, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    4. Fredrik Sjöholm & Nannan Lundin, 2013. "Foreign Firms and Indigenous Technology Development in the People's Republic of China," Asian Development Review, MIT Press, vol. 30(2), pages 49-75, September.
    5. Ibrahim Semih Akçomak, 2009. "Incubators as Tools for Entrepreneurship Promotion in Developing Countries," WIDER Working Paper Series RP2009-52, World Institute for Development Economic Research (UNU-WIDER).
    6. Vinod Mishra & Russell Smyth, 2014. "Technological Change and Wages in China: Evidence from Matched Employer–Employee Data," Review of Development Economics, Wiley Blackwell, vol. 18(1), pages 123-138, February.
    7. Lundin, Nannan & Sjöholm, Fredrik & Ping, He & Qian, Jinchang, 2007. "Technology Development and Job Creation in China," Working Paper Series 697, Research Institute of Industrial Economics.
    8. Shirley Daniel & Dongyoung Lee & Wolf Reitsperger, 2014. "Raising quality consciousness among Chinese manufacturing personnel: Testing the effectiveness of performance management tools," Asia Pacific Journal of Management, Springer, vol. 31(2), pages 549-573, June.
    9. Yongtao Song & Taiwen Feng & Wenbo Jiang, 2017. "The Influence of Green External Integration on Firm Performance: Does Firm Size Matter?," Sustainability, MDPI, vol. 9(8), pages 1-18, August.
    10. Longzheng Du & Zhenglin Zhang & Taiwen Feng, 2018. "Linking green customer and supplier integration with green innovation performance: The role of internal integration," Business Strategy and the Environment, Wiley Blackwell, vol. 27(8), pages 1583-1595, December.

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    More about this item

    Keywords

    Technology; SMEs; China; S&T; R&D;
    All these keywords.

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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