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R&D Efficiency in High-Tech Firms in China

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  • Lee, Sang-Ho
  • Chen, Zhao
  • Xu, Wei

Abstract

Using firm-level data from Changzhou, one of the representative prefectural cities in the Yangzi River Delta in China, we investigate the performances of both internal and external R&D in high-tech firms. We find that, on average, high-tech firms with more internal R&D expenditure apply for more patents in terms of both the total number of patents and the number of invention patents. Internal R&D is the most efficient in foreign firms, followed by private firms and then followed by SOEs (state-owned enterprises). These findings highlight the importance of privatizing high-tech firms in China if the Chinese government intends to accelerate industrial upgrading and convert the pattern of “Made in China” into “Created in China.”

Suggested Citation

  • Lee, Sang-Ho & Chen, Zhao & Xu, Wei, 2017. "R&D Efficiency in High-Tech Firms in China," MPRA Paper 80734, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:80734
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    File URL: https://mpra.ub.uni-muenchen.de/84414/1/MPRA_paper_80734.pdf
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    References listed on IDEAS

    as
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    Cited by:

    1. Lee, Sang-Ho & Muminov, Timur K. & Tomaru, Yoshihiro, 2017. "Partial Privatization And Subsidization In A Mixed Duopoly: R&D Versus Output Subsidies," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 58(2), pages 163-177, December.

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    More about this item

    Keywords

    internal R&D; external R&D; high-tech firms; R&D performances;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • H76 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Other Expenditure Categories
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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