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The technological distance between Chinese firms: deepening and diversifying technologies

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  • Kimura,Koichiro

Abstract

This study measures the technological distance between firms within and across industries as a case study of Chinese firms to investigate firms’ technology accumulation patterns. Specifically, cosine similarity is used to compare the t echnology positions generated by the patent applications of Chinese firms. The analysis shows that as the number of patent applications increases, firms tend to deepen the technological characteristics of each industry and firm while broadening t he variety of technological fields. As a result, although the quantity and quality of t echnologies are critical, understanding the characteristics of technologies as a t echnological structure or system that differs from one firm to another is also crucial.

Suggested Citation

  • Kimura,Koichiro, 2023. "The technological distance between Chinese firms: deepening and diversifying technologies," IDE Discussion Papers 876, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    • Handle: RePEc:jet:dpaper:dpaper876
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    File URL: https://ir.ide.go.jp/record/53624/files/IDP000876_001.pdf
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    References listed on IDEAS

    as
    1. Nicholas Bloom & Mark Schankerman & John Van Reenen, 2013. "Identifying Technology Spillovers and Product Market Rivalry," Econometrica, Econometric Society, vol. 81(4), pages 1347-1393, July.
    2. Koichiro Kimura, 2022. "How do firms specialize? The technological positions of Chinese robotics firms," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 20(4), pages 339-353, October.
    3. Kimura, Koichiro & Matsui, Hiroshi & Motohashi, Kazuyuki & Kaida, Shun & Sinthupundaja, Janthorn, 2022. "Competition and technology position: the case of China's industrial robotics industry," IDE Discussion Papers 834, Institute of Developing Economies, Japan External Trade Organization(JETRO).
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    Keywords

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    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior

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