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Imported Technology and R&D in the Taiwanese Electronic Industry
Author(s) -
Tan LinTi,
Hwang Amy R.
Publication year - 2002
Publication title -
review of development economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.531
H-Index - 50
eISSN - 1467-9361
pISSN - 1363-6669
DOI - 10.1111/1467-9361.00142
Subject(s) - multivariate probit model , bivariate analysis , economics , electronics , industrial organization , business , econometrics , mathematics , engineering , statistics , electrical engineering
The paper identifies the R&D status of the Taiwanese electronics industry by employing a bivariate probit selectivity model to examine the relationship between imports of technology and inhouse R&D at the firm level. A complementary relationship between imported technology and inhouse R&D is observed, which implies that imported technology does not inhibit inhouse R&D in the Taiwanese electronic industry. However, technology‐importing enterprises have a higher average level of R&D expenditure than nonimporting ones, indicating that the R&D conducted in the industry is dominated by the adaptive R&D of the technology‐importing enterprises.
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