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Do Exporting Firms in the People’s Republic of China Innovate?

  • Wignaraja, Ganeshan

    (Asian Development Bank Institute)

This paper assesses factors driving firm-level export performance in Asia’s super exporter—The People’s Republic of China (PRC). While early studies suggested that innovation was important, there has been little research on opening up the black box of technology at firm-level in the PRC, the author undertakes econometric analysis of innovation, learning, and exporting in automobiles and electronics firms in the PRC using a large-scale dataset to identify the most appropriate innovation proxy. Drawing on recent literature on innovation and learning in developing countries, it tests two alternative proxies: (i) a technology index (TI) to capture a variety of minor activities involved in using imported technologies efficiently; and (ii) the research and development (R&D)-to-sales ratio, which represents formal technological efforts to create new products and processes, often at world frontiers.

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File URL: http://www.adbi.org/files/2012.07.03.wp365.exporting.firm.prc.innovate.pdf
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Paper provided by Asian Development Bank Institute in its series ADBI Working Papers with number 365.

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Length: 21 pages
Date of creation: 04 Jul 2012
Date of revision:
Handle: RePEc:ris:adbiwp:0365
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  1. repec:dgr:tuecis:0201 is not listed on IDEAS
  2. Glejser, Herbert & Jacquemin, Alexis & Petit, Jean, 1980. "Exports in an Imperfect Competition Framework: An Analysis of 1,446 Exporters," The Quarterly Journal of Economics, MIT Press, vol. 94(3), pages 507-24, May.
  3. Richard R. Nelson, 2006. "Economic Development from the Perspective of Evolutionary Economic Theory," The Other Canon Foundation and Tallinn University of Technology Working Papers in Technology Governance and Economic Dynamics 02, TUT Ragnar Nurkse School of Innovation and Governance.
  4. Rodrik, Dani, 2006. "What's So Special About China's Exports?," CEPR Discussion Papers 5484, C.E.P.R. Discussion Papers.
  5. Grossman, G.M. & Helpman, E., 1994. "Technology and Trade," Papers 175, Princeton, Woodrow Wilson School - Public and International Affairs.
  6. Ganeshan Wignaraja, 2002. "Firm Size, Technological Capabilities and Market-oriented Policies in Mauritius," Oxford Development Studies, Taylor & Francis Journals, vol. 30(1), pages 87-104.
  7. Metcalfe, J S, 1994. "Evolutionary Economics and Technology Policy," Economic Journal, Royal Economic Society, vol. 104(425), pages 931-44, July.
  8. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
  9. Elhanan Helpman & Marc J. Melitz & Stephen R. Yeaple, 2004. "Export Versus FDI with Heterogeneous Firms," American Economic Review, American Economic Association, vol. 94(1), pages 300-316, March.
  10. Rasiah, Rajah, 2003. "Foreign ownership, technology and electronics exports from Malaysia and Thailand," Journal of Asian Economics, Elsevier, vol. 14(5), pages 785-811, October.
  11. Motohashi, Kazuyuki & Yuan, Yuan, 2010. "Productivity impact of technology spillover from multinationals to local firms: Comparing China's automobile and electronics industries," Research Policy, Elsevier, vol. 39(6), pages 790-798, July.
  12. Jun Du & Sourafel Girma, 2007. "Finance and Firm Export in China," Kyklos, Wiley Blackwell, vol. 60(1), pages 37-54, 02.
  13. Wignaraja, Ganeshan, 2008. "Foreign ownership, technological capabilities and clothing exports in Sri Lanka," Journal of Asian Economics, Elsevier, vol. 19(1), pages 29-39, February.
  14. Motohashi, Kazuyuki & Yun, Xiao, 2007. "China's innovation system reform and growing industry and science linkages," Research Policy, Elsevier, vol. 36(8), pages 1251-1260, October.
  15. Correa, Paulo & Dayoub, Mariam & Francisco, Manuela, 2007. "Identifying supply-side constraints to export performance in Ecuador : an exercise with Investment Climate Survey data," Policy Research Working Paper Series 4179, The World Bank.
  16. Iammarino, Simona & Padilla-Pérez, Ramon & von Tunzelmann, Nick, 2008. "Technological Capabilities and Global-Local Interactions: The Electronics Industry in Two Mexican Regions," World Development, Elsevier, vol. 36(10), pages 1980-2003, October.
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