Indigenous and foreign innovation efforts and drivers of technological upgrading: evidence from China

Xiaolan Fu, Yundan Gong

Research output: Working paper

Abstract

This paper explores the drivers of technology upgrading in emerging economies using a recent Chinese firm-level panel dataset over the 2001-2005 period. It extends the Directed Technical Change theory by considering differences in technology intensities across industries within a country; examines the drivers of technical change, efficiency improvement and TFP growth in Chinese manufacturing firms; and explores the roles of indigenous innovations and foreign technology. It finds that FDI contributes to static industry capabilities by advanced technologies embedded in imported machineries, but not to dynamic technological capabilities of indigenous firms in developing countries. Collective indigenous R&D activities at industry level are the major driver of technology upgrading of indigenous firms that push up the technology frontier. Policy implications are discussed.
Original languageEnglish
Place of PublicationOxford (UK)
PublisherUniversity of Oxford
Number of pages38
Publication statusPublished - 2009

Publication series

NameALPTMD working paper series
PublisherUniversity of Oxford
No.16

Fingerprint

Innovation
Upgrading
China
Industry
Chinese firms
TFP growth
Emerging economies
Directed technical change
Technological capability
Manufacturing firms
Technical change
Developing countries
Policy implications

Cite this

Fu, X., & Gong, Y. (2009). Indigenous and foreign innovation efforts and drivers of technological upgrading: evidence from China. (ALPTMD working paper series; No. 16). Oxford (UK): University of Oxford.
Fu, Xiaolan ; Gong, Yundan. / Indigenous and foreign innovation efforts and drivers of technological upgrading : evidence from China. Oxford (UK) : University of Oxford, 2009. (ALPTMD working paper series; 16).
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Fu, X & Gong, Y 2009 'Indigenous and foreign innovation efforts and drivers of technological upgrading: evidence from China' ALPTMD working paper series, no. 16, University of Oxford, Oxford (UK).

Indigenous and foreign innovation efforts and drivers of technological upgrading : evidence from China. / Fu, Xiaolan; Gong, Yundan.

Oxford (UK) : University of Oxford, 2009. (ALPTMD working paper series; No. 16).

Research output: Working paper

TY - UNPB

T1 - Indigenous and foreign innovation efforts and drivers of technological upgrading

T2 - evidence from China

AU - Fu, Xiaolan

AU - Gong, Yundan

PY - 2009

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N2 - This paper explores the drivers of technology upgrading in emerging economies using a recent Chinese firm-level panel dataset over the 2001-2005 period. It extends the Directed Technical Change theory by considering differences in technology intensities across industries within a country; examines the drivers of technical change, efficiency improvement and TFP growth in Chinese manufacturing firms; and explores the roles of indigenous innovations and foreign technology. It finds that FDI contributes to static industry capabilities by advanced technologies embedded in imported machineries, but not to dynamic technological capabilities of indigenous firms in developing countries. Collective indigenous R&D activities at industry level are the major driver of technology upgrading of indigenous firms that push up the technology frontier. Policy implications are discussed.

AB - This paper explores the drivers of technology upgrading in emerging economies using a recent Chinese firm-level panel dataset over the 2001-2005 period. It extends the Directed Technical Change theory by considering differences in technology intensities across industries within a country; examines the drivers of technical change, efficiency improvement and TFP growth in Chinese manufacturing firms; and explores the roles of indigenous innovations and foreign technology. It finds that FDI contributes to static industry capabilities by advanced technologies embedded in imported machineries, but not to dynamic technological capabilities of indigenous firms in developing countries. Collective indigenous R&D activities at industry level are the major driver of technology upgrading of indigenous firms that push up the technology frontier. Policy implications are discussed.

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T3 - ALPTMD working paper series

BT - Indigenous and foreign innovation efforts and drivers of technological upgrading

PB - University of Oxford

CY - Oxford (UK)

ER -

Fu X, Gong Y. Indigenous and foreign innovation efforts and drivers of technological upgrading: evidence from China. Oxford (UK): University of Oxford. 2009. (ALPTMD working paper series; 16).