Can you teach old dragons new tricks? FDI and innovation activity in Chinese state-owned enterprises
We investigate whether inward FDI, either at the firm or industry level, has any impact on product innovation by Chinese State owned enterprises (SOEs). We use a comprehensive firm level panel data set of Chinese SOEs covering the period 1999 to 2003. Our results show that foreign capital participation is associated with higher innovative activity. Inward FDI in the sector has a negative effect on innovative activity in SOEs. However, there is a positive effect of FDI on SOEs that export, invest in human capital or R&D, or have prior innovation experience. We also find that SOEs with internal R&D activity and human capital development are successful innovators. Hence, our results suggest that rather than relying on sector level inward FDI to improve domestic innovative activity, it is important to get the firm-level fundamentals right.
Year of publication: |
2006
|
---|---|
Authors: | Girma, Sourafel ; Gong, Yundan ; Görg, Holger |
Publisher: |
Bonn : Institute for the Study of Labor (IZA) |
Saved in:
freely available
Series: | IZA Discussion Papers ; 2267 |
---|---|
Type of publication: | Book / Working Paper |
Type of publication (narrower categories): | Working Paper |
Language: | English |
Other identifiers: | 529840804 [GVK] hdl:10419/4009 [Handle] |
Source: |
Persistent link: https://www.econbiz.de/10010265623
Saved in favorites
Similar items by person
-
Can you teach old dragons new tricks? FDI and innovation activity in Chinese state-owned enterprises
Girma, Sourafel, (2006)
-
Can production subsidies foster export activity? Evidence from Chinese firm level data
Girma, Sourafel, (2007)
-
Can production subsidies explain China's export performance? Evidence from firm level data
Girma, Sourafel, (2008)
- More ...