UNU-MERIT Working Papers

Working Paper #2008-019

The Innovativeness of Foreign Firms in China

Branka Urem, Ludovico Alcorta & Tongliang An #2008-019 PDF

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.

Keywords
  • multinational enterprises
  • foreign firms
  • innovation
  • manufacturing
  • China UNU-MERIT Working Papers ISSN 1871-9872
JEL codes
  • F23
  • L60
  • O31

Cite this as

APA 7th ed.

Urem, B., Alcorta, L., & An, T. (2008). The Innovativeness of Foreign Firms in China (UNU-MERIT Working Paper No. 2008-019). UNU-MERIT. https://unu-merit.nl/publications/working-papers/abstract/?id=3068

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