What determines innovation activity in Chinese state-owned enterprises? The role of foreign direct investment

Sourafel Girma, Yundan Gong, Holger Görg

Research output: Contribution to journalArticlepeer-review

Abstract

We investigate whether inward foreign direct investment (FDI), either at the firm or industry level, has any impact on product innovation by Chinese state-owned enterprises (SOEs). We use a comprehensive firm-level panel data set of some 20,000 SOEs during 1999-2005. Our results show that foreign capital participation at the firm level is associated with higher innovative activity. Inward FDI in the sector, by contrast, has a negative effect on innovative activity in SOEs on average. However, there is a positive effect of sector-level FDI on SOEs that export, invest in human capital, or undertake R&D. © 2008 Elsevier Ltd. All rights reserved.
Original languageEnglish
Pages (from-to)866-873
Number of pages8
JournalWorld Development
Volume37
Issue number4
DOIs
Publication statusPublished - Apr 2009

Keywords

  • innovation
  • FDI
  • state-owned enterprises
  • spillovers
  • competition
  • China
  • Asia

Fingerprint Dive into the research topics of 'What determines innovation activity in Chinese state-owned enterprises? The role of foreign direct investment'. Together they form a unique fingerprint.

Cite this