Chang, Chia-Lin and Robin, Stéphane (2010): Knowledge sourcing and firm performance in an industrializing economy: The case of Taiwan (1992-2003).
Download (851Kb) | Preview
We examine the impact of R&D and technology imports on firm performance in Taiwan’s manufacturing industry in a policy context of industrial upgrading. To do so, we estimate a Translog production function on two panels (covering 1992-1995 and 1997-2003), using stochastic frontier models. We find that the effects of both knowledge inputs become significant in a larger number of industries in the second panel. These results suggest that the policies encouraging innovation implemented from 1991 onwards paid off in the second half of the 1990s, with innovation driving firm sales. In traditional industries, the effect of innovation can be interpreted as an effort to catch up with the global technology frontier. In the electronics and high-technology industries, it rather testifies of the emergence of a new domain of specialization for Taiwan – which was largely enabled by the aforementioned innovation policies.
|Item Type:||MPRA Paper|
|Original Title:||Knowledge sourcing and firm performance in an industrializing economy: The case of Taiwan (1992-2003)|
|English Title:||Knowledge sourcing and firm performance in an industrializing economy: The case of Taiwan (1992-2003)|
|Keywords:||Manufacturing Industries, Newly Industrialized Countries, Technology Imports - Stochastic Frontier Estimation.|
|Subjects:||L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L25 - Firm Performance: Size, Diversification, and Scope
O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development; Intellectual Property Rights > O33 - Technological Change: Choices and Consequences; Diffusion Processes
L - Industrial Organization > L6 - Industry Studies: Manufacturing > L60 - General
|Depositing User:||Chia-Lin Chang|
|Date Deposited:||08. Jan 2011 01:55|
|Last Modified:||12. Feb 2013 01:11|
Aw, B-Y. (2002) “Productivity Dynamics of Small and Medium Enterprises in Taiwan”, Small Business Economics, 18(1-3), 69-84
Aw, B-Y. and G. Batra (1998) “Technology, Exports, and Firm Efficiency in Taiwanese Manufacturing”, Economics of Innovation and New Technology, 7(2), 93-113.
Badunenko, O., Fritsch, M. and A. Stephan (2008) “What Drives the Productive Efficiency of a Firm? The Importance of Industry, Location, R&D and Size”, DIW Discussion Papers, No. 775.
Basant, R. and B. Fikkert (1996) “The Effects of R&D, Foreign Technology Purchase, and Domestic and International Spillovers on Productivity in Indian Firms”, Review of Economics and Statistics, 78(2), 187-199.
Battese, G.E. and T.J. Coelli (1992) “Frontier Production Functions, Technical Efficiency and Panel Data: With Application to Paddy Farmers in India”, Journal of Productivity Analysis, 3(1-2), 153-169.
Battese and Coelli (1995) “A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data”, Empirical Economics, 20(2), 325-332.
Beason R. and D.E. Weinstein (1996) “Growth, economies of scale, and targeting in Japan (1995-1990)”, Review of Economics and Statistics, 78(2), 286-295.
Bernard A.B. and J.B. Jensen (1999) “Exceptional Exporter Performance: Cause, Effect, or Both?”, Journal of International Economics, 47(1), 1-25.
Bernard A.B. and J. Wagner (1997) “Exports and Success in German Manufacturing”, Weltwirtschaftliches Archiv/Review of World Economics, 133(1), 134-157.
Berndt, E, and L. Christensen, (1973) “The translog function and the substitution of equipment, structures, and labor in US manufacturing, 1929-1968”, Journal of Econometrics, 1, pp. 81-114.
Bleaney, M. and K. Wakelin (2002) “Efficiency, Innovation, and Exports”, Oxford Bulletin of Economics and Statistics, 64(3), 3-15.
Blumenthal, T., 1979, “A Note on the Relationship between Domestic Research and Development and Imports of Technology,” Economic Development and Cultural Change, 27(2), pp.303-306.
Cassiman, B., and R. Veugelers (2006) “In Search of Complementarity in Innovation Strategy: Internal R&D and External Technology Acquisition”, Management Science, 52(1), pp. 68-82.
Caves, R.E. and M. Uekusa (1976) “Imported Technology and Industrial Progress,” in R.E. Caves and M. Uekusa (eds), Industrial Organization in Japan, The Brooking Institution, Washington, D.C. chap. 7, pp.124-140.
Chan, M.W.L. and D.C. Moutain, (1983) “Economies of scale and the Törnqvist discrete measure of productivity growth”, Review of Economics and Statistics, 70, pp. 663-667.
Chang, E.C., Hasan, I. and W.C. Hunter (1998) “Efficiency of Multinational Banks: An Empirical Investigation”, Applied Financial Economics, 8, 689-696.
Chen, T.J. and D.P. Tang (1987) “Comparing technical efficiency between import-substitution-oriented and export-oriented foreign firms in a developing economy”, Journal of Development Economics, 26(2), 277-289.
Clerides, S.K., Lach, S., and J.R. Tybout (1998) “Is Learning by Exporting Important? Micro-Dynamic Evidence from Colombia, Mexico and Morocco”, Quarterly Journal of Economics, 113(3), 903-948.
Coelli, T.J. (1996) “A Guide to FRONTIER Version 4.1.: A Computer Program for Stochastic Frontier Production and Cost Function Estimation”, CEPA Working Paper No. 7/96.
Cohen, W. M. and D. A. Levinthal (1989) “Innovation and Learning: The Two Faces of R&D. Implications for the Analysis of R&D Investment”, Economic Journal, 99(3), 569–596.
Cohen, W. M., and D. A. Levinthal (1990) “Absorptive Capacity: A New Perspective on Learning and Innovation”, Administrative Science Quarterly, 35, 128–195.
Griliches, Z., 1979, Issues in assessing the contribution of R&D to productivity growth, Bell Journal of Economics, 10, 92-116.
Guerrieri, P. and C. Pietrobelli (2006) “Old and new forms of clustering and production networks in changing technological regimes: contrasting evidence from Taiwan and Italy”, Science, Technology, and Society, 11(1), 9-38.
Hall, B. and J. Mairesse (1995) “Exploring the relationship between R&D and productivity in French manufacturing firms”, Journal of Econometrics, 65(1), 263-293.
Hobday, M. (1995) Innovation in East Asia: The Challenge to Japan, Edward Elgar, 224 p.
Hou, C.M. and S. Gee (1993) “National systems supporting technical advance in industry: the case of Taiwan” in R. Nelson (Ed) National Innovation Systems, Oxford University Press.
Jovanovic, B. (1982) “Selection and the Evolution of Industry”, Econometrica, 50(3), 649-670.
Kumbhakar, S.C. and C.A.K. Lovell (2000) Stochastic Frontier Analysis, Cambridge University Press, 333 p.
Lee, W-H. and W-T. Yang (2000) “The cradle of Taiwan high technology industry development – Hsinchu Science Park (HSP)”, Technovation, 20(1), 55-59.
Levy, B. and W-J. Kuo (1991) “The Strategic Orientations of Firms and the Performance of Korea and Taiwan in Frontier Industries: Lessons from Comparative Case Studies of Keyboard and Personal Computer Assembly”, World Development, 19(4), 363-374.
Lundvall, K. and G.E. Battese (2000) “Firm Size, Age and Efficiency: Evidence from Kenyan Manufacturing Firms”, Journal of Development Studies, 36(3), 146-163.
Luo, Y-L. (2001), National Innovation System of Taiwan, STIC – National Science Council, Taiwan.
NSC (2002) Indicators of Science and Technology, Yearly Report, National Science Council, Executive Yuan, R.O.C. Taiwan.
Niringiye A., Luvanda E. and Shitundu J. (2010) “Firm Size and Technical Efficiency in East African Manufacturing Firms”, Current Research Journal of Economic Theory, 2(2), 69-75.
Oczkowski, E. and K. Sharma (2005) “Determinants of Efficiency in Less Developed Countries: Further Evidence from Nepalese Manufacturing Firms”, Journal of Development Studies, 41(4), 617-630.
Odagiri, H., 1983, “R&D Expenditures, Royalty Payments, and Sales Growth in Japanese Manufacturing Corporations,” The Journal of Industrial Economics, 32, 61-71.
Saxenian, A. and J.Y. Hsu (2001) “The Silicon Valley – Hsinchu Connection: Technical Communities and Industrial Upgrading”, Industrial and Corporate Change, 10(4), 893-920.
Söderbom, M. and F. Teal (2002) “Size and Efficiency in African Manufacturing Firms: Evidence from Firm-Level Panel Data”, CSAE Working Paper Series, No. 2002-07.
Tsai, K.H. and J.C. Wang (2005) “An Examination of Taiwan’s Innovation Policy Measures and their Effects”, International Journal of Technology and Globalisation, 1(2), 239-257.