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Government support, international trade and firm's R&D investment Evidence from Chinese high‐tech industries

Government support, international trade and firm's R&D investment Evidence from Chinese high‐tech... Purpose – Innovation is becoming the key approach for firms to achieve sustainable competitive advantages. The purpose of this paper is to examine whether government public R&D subsidies have a positive impact on firms' private R&D investment (RDI) under globalization; this paper also investigates the impact of international trade on firms' private RDI in China. Design/methodology/approach – The paper empirically tests the government support and international trade on firms' private RDI. An online survey was conducted as well as collaborated with the Department of Science and Technology of Zhejiang Province in 2006. The sample was obtained from more than 1,000 firms in high‐tech industries in Zhejiang province, and covers the year 2003‐2005. Linear regression was used for the firm‐level estimations. Findings – The empirical results indicate that public R&D subsidies and disembodied technology imports positively and significantly impact on firms' private RDI, while non‐high‐tech product exports and embodied technology imports do not have positive effects. Moreover, the results show that high‐tech product exports are positively associated with firms' private RDI but not significantly. Originality/value – The paper's findings extend the existing understanding of the determinants of firms' RDI in less developed countries, such as China. Moreover, unlike most extant studies, the authors investigate different types of exports and imports and their impacts on firms' RDI, respectively. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Science and Technology Policy in China Emerald Publishing

Government support, international trade and firm's R&D investment Evidence from Chinese high‐tech industries

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Publisher
Emerald Publishing
Copyright
Copyright © 2011 Emerald Group Publishing Limited. All rights reserved.
ISSN
1758-552X
DOI
10.1108/17585521111155200
Publisher site
See Article on Publisher Site

Abstract

Purpose – Innovation is becoming the key approach for firms to achieve sustainable competitive advantages. The purpose of this paper is to examine whether government public R&D subsidies have a positive impact on firms' private R&D investment (RDI) under globalization; this paper also investigates the impact of international trade on firms' private RDI in China. Design/methodology/approach – The paper empirically tests the government support and international trade on firms' private RDI. An online survey was conducted as well as collaborated with the Department of Science and Technology of Zhejiang Province in 2006. The sample was obtained from more than 1,000 firms in high‐tech industries in Zhejiang province, and covers the year 2003‐2005. Linear regression was used for the firm‐level estimations. Findings – The empirical results indicate that public R&D subsidies and disembodied technology imports positively and significantly impact on firms' private RDI, while non‐high‐tech product exports and embodied technology imports do not have positive effects. Moreover, the results show that high‐tech product exports are positively associated with firms' private RDI but not significantly. Originality/value – The paper's findings extend the existing understanding of the determinants of firms' RDI in less developed countries, such as China. Moreover, unlike most extant studies, the authors investigate different types of exports and imports and their impacts on firms' RDI, respectively.

Journal

Journal of Science and Technology Policy in ChinaEmerald Publishing

Published: Jul 26, 2011

Keywords: Governmental support; International trade; R&D investment; High‐tech industries; China; Research and development; Competitive advantage

References