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China's R&D explosion: Analyzing productivity effects across ownership types and over time

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  • Boeing, Philipp
  • Mueller, Elisabeth
  • Sandner, Philipp

Abstract

In the past years Chinese firms increased their spending on R&D substantially and worked on achieving a higher quality level of R&D. We analyze whether different R&D activities show a positive influence on total factor productivity (TFP) for firms of different ownership types and across two time periods. Our panel dataset with annual information allows us to study listed firms over the two time periods 2001-2006 and 2007-2011. Privately owned enterprises (POEs) not only obtain higher returns from own R&D than majority and minority state-owned enterprises (SOEs), they are also able to increase their leading position. Overall strong increases in the size of patent stocks are related to a decreasingly positive or even vanishing influence on TFP. POEs not only produce R&D of the highest quality but are also the only ownership type profiting from higher quality. Up to now research collaborations allow almost no benefit with the only exception stemming from domestic collaborations with individuals. Our comprehensive analysis depicts strengths but also weaknesses of the corporate sector in China. We derive implications for the further development of economic policies.

Suggested Citation

  • Boeing, Philipp & Mueller, Elisabeth & Sandner, Philipp, 2015. "China's R&D explosion: Analyzing productivity effects across ownership types and over time," ZEW Discussion Papers 15-006, ZEW - Leibniz Centre for European Economic Research.
  • Handle: RePEc:zbw:zewdip:15006
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    Cited by:

    1. Boeing, Philipp & Mueller, Elisabeth, 2015. "Measuring patent quality in international comparison: Index development and application to China," ZEW Discussion Papers 15-051, ZEW - Leibniz Centre for European Economic Research.
    2. Boeing, Philipp, 2016. "The allocation and effectiveness of China’s R&D subsidies - Evidence from listed firms," Research Policy, Elsevier, vol. 45(9), pages 1774-1789.
    3. Feng, Ping & Ke, Shanzi, 2016. "Self-selection and performance of R&D input of heterogeneous firms: Evidence from China's manufacturing industries," China Economic Review, Elsevier, vol. 41(C), pages 181-195.
    4. repec:eee:respol:v:46:y:2017:i:9:p:1533-1551 is not listed on IDEAS
    5. Boeing, Philipp & Mueller, Elisabeth, 2016. "Measuring patent quality and national technological capacity in cross-country comparison," ZEW Discussion Papers 16-048, ZEW - Leibniz Centre for European Economic Research.
    6. repec:eee:techno:v:74-75:y:2018:i::p:18-31 is not listed on IDEAS
    7. repec:tpr:asiaec:v:18:y:2019:i:1:p:207-236 is not listed on IDEAS
    8. repec:spr:jbecon:v:89:y:2019:i:2:d:10.1007_s11573-018-0905-9 is not listed on IDEAS
    9. Böing, Philipp & Müller, Elisabeth, 2019. "Measuring China's patent quality: Development and validation of ISR indices," ZEW Discussion Papers 19-017, ZEW - Leibniz Centre for European Economic Research.
    10. repec:unt:jnapdj:v:24:y:2017:i:1:p:1-21 is not listed on IDEAS
    11. repec:gam:jsusta:v:11:y:2019:i:2:p:297-:d:195990 is not listed on IDEAS
    12. repec:gam:jsusta:v:11:y:2019:i:4:p:983-:d:205916 is not listed on IDEAS
    13. 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.
    14. Rong, Zhao & Wu, Xiaokai & Boeing, Philipp, 2017. "The effect of institutional ownership on firm innovation: Evidence from Chinese listed firms," Research Policy, Elsevier, vol. 46(9), pages 1533-1551.
    15. Rafiq, Shuddhasattwa & Salim, Ruhul & Smyth, Russell, 2016. "The moderating role of firm age in the relationship between R&D expenditure and financial performance: Evidence from Chinese and US mining firms," Economic Modelling, Elsevier, vol. 56(C), pages 122-132.
    16. Huang, Yanghua & Salike, Nimesh & Yin, Zhifeng & Zeng, Douglas Zhihua, 2017. "Enterprise innovation in China: Does ownership or size matter?," RIEI Working Papers 2017-06, Xi'an Jiaotong-Liverpool University, Research Institute for Economic Integration.
    17. Ruiqi, Wang & Wang, Fangjun & Xu, Luying & Yuan, Changhong, 2017. "R&D expenditures, ultimate ownership and future performance: Evidence from China," Journal of Business Research, Elsevier, vol. 71(C), pages 47-54.
    18. repec:tpr:asiaec:v:16:y:2017:i:3:p:193-208 is not listed on IDEAS
    19. repec:eee:proeco:v:199:y:2018:i:c:p:107-124 is not listed on IDEAS
    20. repec:eee:enepol:v:121:y:2018:i:c:p:175-184 is not listed on IDEAS
    21. repec:spr:nathaz:v:88:y:2017:i:2:d:10.1007_s11069-017-2915-2 is not listed on IDEAS

    More about this item

    Keywords

    productivity; R&D; China; ownership type; patents;

    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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