Does innovation matter for Chinese hightech exports? a firm-level analysis

Fu, Dahai and Wu, Yanrui and Tang, Yihong (2010): Does innovation matter for Chinese hightech exports? a firm-level analysis.

Abstract

This paper analyzes the role of innovation activities in the export participation of 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 and product innovation dummies, 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 provinces.

• Item Type: MPRA Paper
• Language: English
• Keywords: Exporting, Innovation, R&D, High technology, China
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O53 - Asia including Middle East; F - International Economics > F1 - Trade > F14 - Empirical Studies of Trade; O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O32 - Management of Technological Innovation and R&D

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