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Intangible Knowledge Capital and Innovation in China

Author

Listed:
  • 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)

Abstract

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.

Suggested Citation

  • Fleisher, Belton M. & McGuire, William H. & Smith, Adam Nicholas & Zhou, Mi, 2013. "Intangible Knowledge Capital and Innovation in China," IZA Discussion Papers 7798, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp7798
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    References listed on IDEAS

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    Keywords

    intellectual capital; technology; economic growth; intellectual property; Asia; China;

    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
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • P33 - Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Relations, and Aid

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