Innovation in Chinese internet companies: A meta-frontier analysis.
The innovation of a particular company benefits the whole industry when innovation technology transfers to others. Similarly, the development and innovation in internet companies influence the development and innovation of the industry. This investigation has applied a unique approach of meta-fronti...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Public Library of Science (PLoS)
2020-01-01
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| Series: | PLoS ONE |
| Online Access: | https://doi.org/10.1371/journal.pone.0233278 |
| _version_ | 1819041360840228864 |
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| author | Sadaf Hafeez Noreen Izza Arshad Lukman Bin A B Rahim Muhammad Farooq Shabbir Jawad Iqbal |
| author_facet | Sadaf Hafeez Noreen Izza Arshad Lukman Bin A B Rahim Muhammad Farooq Shabbir Jawad Iqbal |
| author_sort | Sadaf Hafeez |
| collection | DOAJ |
| description | The innovation of a particular company benefits the whole industry when innovation technology transfers to others. Similarly, the development and innovation in internet companies influence the development and innovation of the industry. This investigation has applied a unique approach of meta-frontier analysis to estimate and analyze the innovation in internet companies in China. A unique dataset of Chinese internet companies from 2000 to 2017 has been utilized to estimate and compare the innovation over the period of study. The change in technology gap ratio (TGR) and a shift in production function have translated into innovation which was overlooked by previous studies. It is found that the production function of internet companies is moving upward in the presence of external factors such as smartphones invention, mobile internet, mobile payments, and artificial intelligence, etc. Consequently, a sudden increase in TGR is captured due to the innovation of some companies. Hence, the average TE of the industry falls caused by the increased distance of other companies form industry production function. However, the innovation advantage defused when other companies start imitating and the average TE elevates. A steady increase in the TGR index revealed that the continuous innovation-based growth of some companies lifting the production frontier upward. This provides the opportunity for other companies to imitate and provides continuous growth in the industry. This study provides a novel methodological approach to measure innovation and also provide practical implication by empirical estimation of innovation in Chinese internet companies. |
| first_indexed | 2024-12-21T09:23:46Z |
| format | Article |
| id | doaj.art-e9436bcc221543a2bf9844bbb8b03c36 |
| institution | Directory Open Access Journal |
| issn | 1932-6203 |
| language | English |
| last_indexed | 2024-12-21T09:23:46Z |
| publishDate | 2020-01-01 |
| publisher | Public Library of Science (PLoS) |
| record_format | Article |
| series | PLoS ONE |
| spelling | doaj.art-e9436bcc221543a2bf9844bbb8b03c362022-12-21T19:08:58ZengPublic Library of Science (PLoS)PLoS ONE1932-62032020-01-01155e023327810.1371/journal.pone.0233278Innovation in Chinese internet companies: A meta-frontier analysis.Sadaf HafeezNoreen Izza ArshadLukman Bin A B RahimMuhammad Farooq ShabbirJawad IqbalThe innovation of a particular company benefits the whole industry when innovation technology transfers to others. Similarly, the development and innovation in internet companies influence the development and innovation of the industry. This investigation has applied a unique approach of meta-frontier analysis to estimate and analyze the innovation in internet companies in China. A unique dataset of Chinese internet companies from 2000 to 2017 has been utilized to estimate and compare the innovation over the period of study. The change in technology gap ratio (TGR) and a shift in production function have translated into innovation which was overlooked by previous studies. It is found that the production function of internet companies is moving upward in the presence of external factors such as smartphones invention, mobile internet, mobile payments, and artificial intelligence, etc. Consequently, a sudden increase in TGR is captured due to the innovation of some companies. Hence, the average TE of the industry falls caused by the increased distance of other companies form industry production function. However, the innovation advantage defused when other companies start imitating and the average TE elevates. A steady increase in the TGR index revealed that the continuous innovation-based growth of some companies lifting the production frontier upward. This provides the opportunity for other companies to imitate and provides continuous growth in the industry. This study provides a novel methodological approach to measure innovation and also provide practical implication by empirical estimation of innovation in Chinese internet companies.https://doi.org/10.1371/journal.pone.0233278 |
| spellingShingle | Sadaf Hafeez Noreen Izza Arshad Lukman Bin A B Rahim Muhammad Farooq Shabbir Jawad Iqbal Innovation in Chinese internet companies: A meta-frontier analysis. PLoS ONE |
| title | Innovation in Chinese internet companies: A meta-frontier analysis. |
| title_full | Innovation in Chinese internet companies: A meta-frontier analysis. |
| title_fullStr | Innovation in Chinese internet companies: A meta-frontier analysis. |
| title_full_unstemmed | Innovation in Chinese internet companies: A meta-frontier analysis. |
| title_short | Innovation in Chinese internet companies: A meta-frontier analysis. |
| title_sort | innovation in chinese internet companies a meta frontier analysis |
| url | https://doi.org/10.1371/journal.pone.0233278 |
| work_keys_str_mv | AT sadafhafeez innovationinchineseinternetcompaniesametafrontieranalysis AT noreenizzaarshad innovationinchineseinternetcompaniesametafrontieranalysis AT lukmanbinabrahim innovationinchineseinternetcompaniesametafrontieranalysis AT muhammadfarooqshabbir innovationinchineseinternetcompaniesametafrontieranalysis AT jawadiqbal innovationinchineseinternetcompaniesametafrontieranalysis |