Knowledge sourcing and firm performance in an industrializing economy: the case of Taiwan in the 1990s
This paper examines the impact of R&D and technology imports on firm performance in Taiwan’s manufacturing industry. Using a panel of 27,754 firms observed from 1992 to 1995, we estimate Translog production functions in twenty 2-digit industries. We implement four estimations procedures: fixed-effect regression, random-effect GLS, Hausman-Taylor estimator, and Stochastic Frontier Estimation. Our most reliable estimates, obtained with fixed effect and Hausman-Taylor models, show that knowledge inputs have a significant impact on firm sales in a small number of industries, and suggest that R&D and technology imports are more likely to be complements rather than substitutes.
|Date of creation:||2006|
|Date of revision:|
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- Susan Athey & Scott Stern, 1998. "An Empirical Framework for Testing Theories About Complimentarity in Organizational Design," NBER Working Papers 6600, National Bureau of Economic Research, Inc.
- 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.
- Chan, M W Luke & Mountain, Dean C, 1983. "Economies of Scale and the Tornqvist Discrete Measure of Productivity Growth," The Review of Economics and Statistics, MIT Press, vol. 65(4), pages 663-67, November.
- Cassiman, Bruno & Veugelers, Reinhilde, 2002. "Complementarity in the Innovation Strategy: Internal R&D, External Technology Acquisition and Cooperation," CEPR Discussion Papers 3284, C.E.P.R. Discussion Papers.
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