Knowledge sourcing and firm performance in an industrializing economy: The case of Taiwan (1992-2003)
We examine the impact of R&D and technology imports on firm performance in Taiwan’s manufacturing industry in a policy context of industrial upgrading. To do so, we estimate a Translog production function on two panels (covering 1992-1995 and 1997-2003), using stochastic frontier models. We find that the effects of both knowledge inputs become significant in a larger number of industries in the second panel. These results suggest that the policies encouraging innovation implemented from 1991 onwards paid off in the second half of the 1990s, with innovation driving firm sales. In traditional industries, the effect of innovation can be interpreted as an effort to catch up with the global technology frontier. In the electronics and high-technology industries, it rather testifies of the emergence of a new domain of specialization for Taiwan – which was largely enabled by the aforementioned innovation policies.
|Date of creation:||01 Dec 2010|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Stephan, Andreas & Badunenko, Oleg & Fritsch, Michael, 2008.
"What Drives the Productive Efficiency of a Firm? The Importance of Industry,Location, R&D, and Size,"
CISEG Working Papers Series
4, Centre for Innovation Systems, Entrepreneurship and Growth, Jönköping International Business School.
- Oleg Badunenko & Michael Fritsch & Andreas Stephan, 2008. "What Drives the Productive Efficiency of a Firm?: The Importance of Industry, Location, R&D, and Size," Discussion Papers of DIW Berlin 775, DIW Berlin, German Institute for Economic Research.
- Badunenko, Oleg & Fritsch, Michael & Stephan, Andreas, 2008. "What Drives the Productive Efficiency of a Firm? - the importance of industry, location, R&D, and size," Working Paper Series in Economics and Institutions of Innovation 126, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
- Sofronis Clerides & Saul Lach & James Tybout, 1996.
"Is "Learning-by-Exporting" Important? Micro-Dynamic Evidence from Colombia, Mexico and Morocco,"
NBER Working Papers
5715, National Bureau of Economic Research, Inc.
- Sofronis K. Clerides & Saul Lach & James R. Tybout, 1998. "Is Learning By Exporting Important? Micro-Dynamic Evidence From Colombia, Mexico, And Morocco," The Quarterly Journal of Economics, MIT Press, vol. 113(3), pages 903-947, August.
- Sofronis Clerides & Saul Lach & James Tybout, 1996. "Is "learning-by-exporting" important? Micro-dynamic evidence from Colombia, Mexico and Morocco," Finance and Economics Discussion Series 96-30, Board of Governors of the Federal Reserve System (U.S.).
- Bernard, A. & Wagner, J., 1996.
"Exports and Success in German Manufacturing,"
96-10, Massachusetts Institute of Technology (MIT), Department of Economics.
- Andrew Bernard & Joachim Wagner, 1997. "Exports and success in German manufacturing," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 133(1), pages 134-157, March.
- C. Edward Chang & Iftekhar Hasan & William Hunter, 1998. "Efficiency of multinational banks: an empirical investigation," Applied Financial Economics, Taylor & Francis Journals, vol. 8(6), pages 689-696.
- Bernard, A., 1997.
"Exceptional Exporter Performance: Cause, Effect, or Both?,"
97-21, Massachusetts Institute of Technology (MIT), Department of Economics.
- Bernard, Andrew B. & Bradford Jensen, J., 1999. "Exceptional exporter performance: cause, effect, or both?," Journal of International Economics, Elsevier, vol. 47(1), pages 1-25, February.
- Andrew B. Bernard & J. Bradford Jensen, 1997. "Exceptional Exporter Performance: Cause, Effect, or Both?," NBER Working Papers 6272, National Bureau of Economic Research, Inc.
- Chen, Tain-jy & Tang, De-piao, 1987. "Comparing technical efficiency between import-substitution-oriented and export-oriented foreign firms in a developing economy," Journal of Development Economics, Elsevier, vol. 26(2), pages 277-289, August.
- Jovanovic, Boyan, 1982. "Selection and the Evolution of Industry," Econometrica, Econometric Society, vol. 50(3), pages 649-70, May.
- Edward Oczkowski & Kishor Sharma, 2005. "Determinants of Efficiency in Least Developed Countries: Further Evidence from Nepalese Manufacturing Firms," Journal of Development Studies, Taylor & Francis Journals, vol. 41(4), pages 617-630.
- Karl Lundvall & George Battese, 2000. "Firm size, age and efficiency: Evidence from Kenyan manufacturing firms," Journal of Development Studies, Taylor & Francis Journals, vol. 36(3), pages 146-163.
- Bronwyn H. Hall & Jacques Mairesse, 1992.
"Exploring the Relationship Between R&D and Productivity in French Manufacturing Firms,"
NBER Working Papers
3956, National Bureau of Economic Research, Inc.
- Hall, Bronwyn H. & Mairesse, Jacques, 1995. "Exploring the relationship between R&D and productivity in French manufacturing firms," Journal of Econometrics, Elsevier, vol. 65(1), pages 263-293, January.
- Aw, B.Y. & Batra, G., 1998. "Technology, Exports and Firm Efficiency in Taiwanese Manufacturing," Papers 2, Pennsylvania State - Department of Economics.
- Måns Söderbom & Francis Teal, 2004.
"Size and Efficiency in African Manufacturing Firms:Evidence from Firm-Level Panel Data,"
Development and Comp Systems
- Soderbom, Mans & Teal, Francis, 2004. "Size and efficiency in African manufacturing firms: evidence from firm-level panel data," Journal of Development Economics, Elsevier, vol. 73(1), pages 369-394, February.
- Måns Söderbom & Francis Teal, 2002. "Size and efficiency in African manufacturing firms: Evidence from firm-level panel data," CSAE Working Paper Series 2002-07, Centre for the Study of African Economies, University of Oxford.
- Bruno Cassiman & Reinhilde Veugelers, 2006. "In Search of Complementarity in Innovation Strategy: Internal R& D and External Knowledge Acquisition," Management Science, INFORMS, vol. 52(1), pages 68-82, January.
- Cohen, Wesley M & Levinthal, Daniel A, 1989. "Innovation and Learning: The Two Faces of R&D," Economic Journal, Royal Economic Society, vol. 99(397), pages 569-96, September.
- Roberts, Mark J & Tybout, James R, 1997. "The Decision to Export in Colombia: An Empirical Model of Entry with Sunk Costs," American Economic Review, American Economic Association, vol. 87(4), pages 545-64, September.
- Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-32.
- Beason, R. & Weinstein, D.E., 1993.
"Growth, Economies of Scale, and Targeting in Japan (1955- 1990),"
Harvard Institute of Economic Research Working Papers
1644, Harvard - Institute of Economic Research.
- Beason, Richard & Weinstein, David E, 1996. "Growth, Economies of Scale, and Targeting in Japan (1955-1990)," The Review of Economics and Statistics, MIT Press, vol. 78(2), pages 286-95, May.
- Blumenthal, Tuvia, 1979. "A Note on the Relationship between Domestic Research and Development and Imports of Technology," Economic Development and Cultural Change, University of Chicago Press, vol. 27(2), pages 303-06, January.
- Bee Yan Aw & Geeta Batra, 1998. "Technology, Exports And Firm Efficiency In Taiwanese Manufacturing," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 7(2), pages 93-113.
- Saxenian, AnnaLee & Hsu, Jinn-Yuh, 2001. "The Silicon Valley-Hsinchu Connection: Technical Communities and Industrial Upgrading," Industrial and Corporate Change, Oxford University Press, vol. 10(4), pages 893-920, December.
- Bleaney, Michael & Wakelin, Katherine, 2002. " Efficiency, Innovation and Exports," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 64(1), pages 3-15, February.
- Berndt, Ernst R. & Christensen, Laurits R., 1973. "The translog function and the substitution of equipment, structures, and labor in U.S. manufacturing 1929-68," Journal of Econometrics, Elsevier, vol. 1(1), pages 81-113, March.
- Levy, Brian & Kuo, Wen-Jeng, 1991. "The strategic orientations of firms and the performance of Korea and Taiwan in frontier industries: Lessons from comparative case studies of keyboard and personal computer assembly," World Development, Elsevier, vol. 19(4), pages 363-374, April.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:27913. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht)
If references are entirely missing, you can add them using this form.