Absorptive capacity and the benefits from global reservoirs of knowledge: evidence from a linked China-OECD dataset

Xiaolan Fu, Yundan Gong

Research output: Preprint or Working paperWorking paper

Abstract

This paper investigates the role of absorptive capacity in the diffusion of global technology with sector and firm heterogeneity. We construct the FDI-intensity weighted global R&D stock for each industry and link it to Chinese firm-level panel data relating to 53,981 firms over the period 2001-2005. Non-parametric frontier analysis is employed to explore how absorptive capacity affects technical change and catch-up in the presence of global knowledge spillovers. We find that R&D activities and training at individual firms serve as an effective source of absorptive capability. The contribution of absorptive capacity varies according to the type of FDI and the extent of openness.
Original languageEnglish
Place of PublicationOxford (UK)
PublisherUniversity of Oxford
Number of pages36
Publication statusPublished - 2009

Publication series

NameALPTMD working paper series
PublisherUniversity of Oxford
No.31

Keywords

  • absorptive capacity
  • FDI
  • R&D spillovers
  • productivity

Fingerprint Dive into the research topics of 'Absorptive capacity and the benefits from global reservoirs of knowledge: evidence from a linked China-OECD dataset'. Together they form a unique fingerprint.

  • Cite this

    Fu, X., & Gong, Y. (2009). Absorptive capacity and the benefits from global reservoirs of knowledge: evidence from a linked China-OECD dataset. (ALPTMD working paper series; No. 31). University of Oxford.