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Intangible Knowledge Capital and Innovation in China

  • Fleisher, Belton M.

    ()

    (Ohio State University)

  • McGuire, William H.

    ()

    (University of Washington Tacoma)

  • Smith, Adam Nicholas

    ()

    (Ohio State University)

  • Zhou, Mi

    (Agricultural Bank of China)

Intangible knowledge capital (IKC) – technology produced by workers but not embodied in them – can offset the "middle income trap" as China exhausts the benefits of international technology transfer. IKC is productivity-enhancing among Chinese enterprises – more so in domestically owned than in foreign invested enterprises. Consistent with other research, we find that China's IKC generates patents in China, but fewer than in major industrialized economies. Among domestically owned enterprises, IKC growth has flowed more toward higher-tech, export-oriented industries, while among foreign invested enterprises, it has been oriented more toward domestic sales.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7798.

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Length: 28 pages
Date of creation: Dec 2013
Date of revision:
Handle: RePEc:iza:izadps:dp7798
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