The Innovativeness of Foreign Firms in China

Urem, Branka, Alcorta, Ludovico and An, Tongliang (2008). The Innovativeness of Foreign Firms in China. UNU-MERIT.

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  • Author Urem, Branka
    Alcorta, Ludovico
    An, Tongliang
    Title The Innovativeness of Foreign Firms in China
    Publication Date 2008
    Place of Publication Maastricht
    Publisher UNU-MERIT
    Pages 33
    Abstract This paper studies the relationship between foreign ownership and innovations of high novelty in context of advanced developing countries. We develop hypotheses about a direct relationship in terms of two dimensions, propensity and intensity of innovations of high novelty, and a contingency hypothesis about the moderating impact of R&D internationalisation on the relationship with propensity. The analysis is based on innovation survey data on manufacturing firms from Jiangsu province of China. Hypotheses are tested using non-parametric methods. We find that foreign firms do not have a higher propensity of innovations of high novelty, not even when they engage in formal R&D. However, the evidence suggests that foreign firms have a higher intensity of innovations of high novelty than domestic firms.
    Keyword Multinational enterprises
    Foreign firms
    Innovation
    Manufacturing
    China
    JEL F23
    L60
    O31
    Copyright Holder UNU-MERIT
    Copyright Year 2008
    Copyright type All rights reserved
    ISSN 18719872
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