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Does Innovation Matter for Chinese High-Tech Exports? A Firm-Level Analysis

Author

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  • Dahai Fu

    (Business School, University of Western Australia and International Trade and Economics University of International Business and Economics, Beijing)

  • Yanrui Wu

    (Business School, University of Western Australia)

  • Yihong Tang

    (School of International Trade and Economics Central University of Finance and Economics, Beijing)

Abstract

This paper examines the effect of innovation on export decision in Chinese high-tech firms during the period of 2005-2007. Using a parametric, instrumental variable approach and a non-parametric matching method, we find that firm-level innovation efforts, measured by R&D spending and new product output, play only a minor role for domestic exporters. Foreign-invested firms dominate the high-tech exports but do not rely on indigenous innovation activities. These results thus confirm prior findings that the success of Chinese high-tech exports does not result from heavy R&D expenditure and technological progress. Moreover, different types of innovation measures show different impacts on the likelihood of exporting. The impacts of innovation on exporting vary widely across industries and Chinese regions.

Suggested Citation

  • Dahai Fu & Yanrui Wu & Yihong Tang, 2011. "Does Innovation Matter for Chinese High-Tech Exports? A Firm-Level Analysis," Economics Discussion / Working Papers 11-21, The University of Western Australia, Department of Economics.
    • Handle: RePEc:uwa:wpaper:11-21
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    Cited by:

    1. Burak Sencer Atasoy, 2021. "The determinants of export sophistication: Does digitalization matter?," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(4), pages 5135-5159, October.

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    More about this item

    JEL classification:

    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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