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

Sourafel Girma; Yundan Gong; Holger Görg

doi:10.1016/j.worlddev.2008.07.017

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 journal › Article › peer-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 language	English
Pages (from-to)	866-873
Number of pages	8
Journal	World Development
Volume	37
Issue number	4
DOIs	https://doi.org/10.1016/j.worlddev.2008.07.017
Publication status	Published - Apr 2009

Keywords

innovation
FDI
state-owned enterprises
spillovers
competition
China
Asia

Access to Document

10.1016/j.worlddev.2008.07.017

Cite this

@article{aadc83328cd8453a91d7db04ea267f0b,

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

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. {\textcopyright} 2008 Elsevier Ltd. All rights reserved.",

keywords = "innovation, FDI, state-owned enterprises, spillovers, competition, China, Asia",

author = "Sourafel Girma and Yundan Gong and Holger G{\"o}rg",

year = "2009",

month = apr,

doi = "10.1016/j.worlddev.2008.07.017",

language = "English",

volume = "37",

pages = "866--873",

journal = "World Development",

issn = "0305-750X",

publisher = "Elsevier",

number = "4",

}

TY - JOUR

T1 - What determines innovation activity in Chinese state-owned enterprises? The role of foreign direct investment

AU - Girma, Sourafel

AU - Gong, Yundan

AU - Görg, Holger

PY - 2009/4

Y1 - 2009/4

N2 - 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.

AB - 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.

KW - innovation

KW - FDI

KW - state-owned enterprises

KW - spillovers

KW - competition

KW - China

KW - Asia

UR - http://www.scopus.com/inward/record.url?scp=61849105470&partnerID=8YFLogxK

U2 - 10.1016/j.worlddev.2008.07.017

DO - 10.1016/j.worlddev.2008.07.017

M3 - Article

SN - 0305-750X

VL - 37

SP - 866

EP - 873

JO - World Development

JF - World Development

IS - 4

ER -

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

Abstract

Keywords

Access to Document

Other files and links

Fingerprint

Cite this