FDI, R&D and Innovation Output in the Chinese Automobile Industry

Chen, Fang and Mohnen, Pierre (2009). FDI, R&D and Innovation Output in the Chinese Automobile Industry. UNU-MERIT.

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  • Author Chen, Fang
    Mohnen, Pierre
    Title FDI, R&D and Innovation Output in the Chinese Automobile Industry
    Publication Date 2009
    Publisher UNU-MERIT
    Abstract After joining the World Trade Organization (WTO), China witnessed a major inflow of Foreign Direct Investment (FDI). Many famous automobile firms of developed countries were attracted to invest in China to cooperate with domestic firms. This paper uses firm-level data of the Chinese automobile industry to analyze the determinants of, and the interrelationships between, innovation input and innovation output, and in particular whether FDI had any influence on these two aspects of innovation. A generalized tobit model will be estimated for both R&D and the share of innovative sales for 2002/2003 and 2005/2006. The findings show that FDI firms are less R&D intensive but, when they innovate in new products, they are more product innovative than domestic-funded firms.
    Keyword FDI
    China
    R&D
    Innovation
    Automobile industry
    JEL O14
    L62
    F21
    Copyright Holder UNU-MERIT
    Copyright Year 2009
    ISSN 1871-9872
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    Created: Wed, 11 Dec 2013, 16:36:20 JST