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An Investigation of Firm-Level R&D Capabilities in East Asia

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  • Gary H. Jefferson

  • Zhong Kaifeng

Abstract

This paper uses a survey of 1,826 firms distributed over ten East Asian metropolitan areas ??? Jakarta, Kuala Lumpur, Manila, Seoul, and five Chinese cities ??? to investigate the sources of firm-level R&D capabilities. The analysis identifies the impact of 23 survey variables, classified by openness, human capital, R&D network, and institutional quality, on the efficiency of firm R&D operations and on overall firm performance. These firmlevel results are used to construct composite measures R&D capabilities for each of the 10 metropolitan economies. Using the firm samples, returns to R&D are also estimated for each of the metropolitan areas. Where cross economy comparisons are possible, as they are for Seoul and the five Chinese cities, we find a strong association between overall R&D productivity in these city economies and the composite measures of citywide R&D capabilities. In particular, high composite measures in Seoul and Shanghai are associated with high returns to R&D in those cities. The large productivitywage gaps in the Chinese cities appear to be attracting large and visible investment in R&D operations. Whether R&D wages rise to narrow this gap or investment and technology flows continue to sustain the gap will substantially affect the pattern of R&D operations within the Asian region.

Suggested Citation

  • Gary H. Jefferson & Zhong Kaifeng, 2002. "An Investigation of Firm-Level R&D Capabilities in East Asia," William Davidson Institute Working Papers Series 583, William Davidson Institute at the University of Michigan.
    • Handle: RePEc:wdi:papers:2003-583
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    References listed on IDEAS

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    Cited by:

    1. Tomas Havranek & Anna Sokolova, 2016. "Do Consumers Really Follow a Rule of Thumb? Three Thousand Estimates from 130 Studies Say "Probably Not"," Working Papers 2016/08, Czech National Bank, Research and Statistics Department.
    2. Robert Huggins & Shougui Luo & Piers Thompson, 2014. "The competitiveness of China's Leading Regions: Benchmarking Their Knowledge-based Economies," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 105(3), pages 241-267, July.
    3. Yusuf, Shahid & Nabeshima, Kaoru, 2006. "Two decades of reform : the changing organization dynamics of Chinese industrial firms," Policy Research Working Paper Series 3806, The World Bank.

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    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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