Indigenous and Foreign Innovation Efforts and Drivers of Technological Upgrading.

This paper explores the role of indigenous and foreign innovation efforts in technological upgrading in developing countries, taking into account sectoral specificities in technical change. Using a Chinese firm-level panel dataset covering 2001–05, the paper decomposes productivity growth into techn...

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Main Authors: Fu, X, Gong, Y
Format: Journal article
Language:English
Published: Elsevier 2011
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author Fu, X
Gong, Y
author_facet Fu, X
Gong, Y
author_sort Fu, X
collection OXFORD
description This paper explores the role of indigenous and foreign innovation efforts in technological upgrading in developing countries, taking into account sectoral specificities in technical change. Using a Chinese firm-level panel dataset covering 2001–05, the paper decomposes productivity growth into technical change and efficiency improvement and examines the impact of indigenous and foreign innovation efforts on these changes. Indigenous firms are found to be the leading force on the technological frontier in the low- and medium-technology industries, while foreign-invested firms enjoy a clear lead in the high-technology sector. Collective indigenous R&D; activities at the industry level are found to be the major driver of technology upgrading of indigenous firms that push out the technology frontier. While foreign investment appears to contribute to static industry capabilities, R&D; activities of foreign-invested firms have exerted a significant negative effect on the technical change of local firms over the sample period.
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spelling oxford-uuid:31549bd4-0488-42f7-80b8-20d1a47eedd42022-03-26T13:07:15ZIndigenous and Foreign Innovation Efforts and Drivers of Technological Upgrading.Journal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:31549bd4-0488-42f7-80b8-20d1a47eedd4EnglishDepartment of Economics - ePrintsElsevier2011Fu, XGong, YThis paper explores the role of indigenous and foreign innovation efforts in technological upgrading in developing countries, taking into account sectoral specificities in technical change. Using a Chinese firm-level panel dataset covering 2001–05, the paper decomposes productivity growth into technical change and efficiency improvement and examines the impact of indigenous and foreign innovation efforts on these changes. Indigenous firms are found to be the leading force on the technological frontier in the low- and medium-technology industries, while foreign-invested firms enjoy a clear lead in the high-technology sector. Collective indigenous R&D; activities at the industry level are found to be the major driver of technology upgrading of indigenous firms that push out the technology frontier. While foreign investment appears to contribute to static industry capabilities, R&D; activities of foreign-invested firms have exerted a significant negative effect on the technical change of local firms over the sample period.
spellingShingle Fu, X
Gong, Y
Indigenous and Foreign Innovation Efforts and Drivers of Technological Upgrading.
title Indigenous and Foreign Innovation Efforts and Drivers of Technological Upgrading.
title_full Indigenous and Foreign Innovation Efforts and Drivers of Technological Upgrading.
title_fullStr Indigenous and Foreign Innovation Efforts and Drivers of Technological Upgrading.
title_full_unstemmed Indigenous and Foreign Innovation Efforts and Drivers of Technological Upgrading.
title_short Indigenous and Foreign Innovation Efforts and Drivers of Technological Upgrading.
title_sort indigenous and foreign innovation efforts and drivers of technological upgrading
work_keys_str_mv AT fux indigenousandforeigninnovationeffortsanddriversoftechnologicalupgrading
AT gongy indigenousandforeigninnovationeffortsanddriversoftechnologicalupgrading