Working Paper #2008-019
The Innovativeness of Foreign Firms in China
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