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Do Sources of Knowledge Transfer Matter? – A Firm-level Analysis in the PRD, China

  • Wan-Hsin LIU

This paper investigates whether knowledge transferred from different sources matter differently for carrying out different innovation outcomes, using a firm-level dataset collected in the Pearl River Delta (PRD) in China. It also investigates whether companies in the PRD in China tend to innovate in a similar way as companies in the Asian Newly Industrialised Economies (NIEs) did decades ago. Our estimation results suggest that companies in the PRD, as companies in the Asian NIEs, strongly rely on sourcing from their OEM customers but not on own R&D activities to implement innovative processes to increase production efficiency. In contrast, they engage in own R&D activities in order to develop innovative products, to realise higher innovation sales and to create new knowledge qualified for patenting. In addition to own R&D activities, they rely on sourcing knowledge from different sets of sources to support them to carry out the last three types of innovation outcomes

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File URL: https://www.ifw-members.ifw-kiel.de/publications/do-sources-of-knowledge-transfer-matter-2013-a-firm-level-analysis-in-the-prd-china/kwp1578.pdf
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Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1578.

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Length: 35 pages
Date of creation: Dec 2009
Date of revision:
Handle: RePEc:kie:kieliw:1578
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  1. Christopher F Baum & Mark E. Schaffer & Steven Stillman, 2003. "Instrumental variables and GMM: Estimation and testing," Stata Journal, StataCorp LP, vol. 3(1), pages 1-31, March.
  2. Wagner, Joachim, 2006. "International Firm Activities and Innovation: Evidence from Knowledge Production Functions for German Firms," HWWA Discussion Papers 344, Hamburg Institute of International Economics (HWWA).
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  7. Shahid Yusuf & M. Anjum Altaf & Kaoru Nabeshima, 2004. "Global Production Networking and Technological Change in East Asia," World Bank Publications, The World Bank, number 14918.
  8. Howitt, Peter & Griffith, Rachel & Aghion, Philippe & Blundell, Richard & Bloom, Nick, 2005. "Competition and Innovation: An Inverted-U Relationship," Scholarly Articles 4481507, Harvard University Department of Economics.
  9. John Scott, 2009. "Competition in Research and Development: A Theory for Contradictory Predictions," Review of Industrial Organization, Springer, vol. 34(2), pages 153-171, March.
  10. Douglas Staiger & James H. Stock, 1997. "Instrumental Variables Regression with Weak Instruments," Econometrica, Econometric Society, vol. 65(3), pages 557-586, May.
  11. Zvi Griliches & Jacques Mairesse, 1981. "Productivity and R and D at the Firm Level," NBER Working Papers 0826, National Bureau of Economic Research, Inc.
  12. Christopher F Baum & Vince Wiggins & Steven Stillman & Mark E Schaffer, 1999. "OVERID: Stata module to calculate tests of overidentifying restrictions after ivreg, ivreg2, ivreg29, ivprobit, ivtobit, reg3," Statistical Software Components S396902, Boston College Department of Economics, revised 26 Apr 2010.
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