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Relevance of Own R&D and Sources of Knowledge Transfer for Industrial Innovation in C hina
Author(s) -
Liu WanHsin
Publication year - 2014
Publication title -
the developing economies
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.305
H-Index - 30
eISSN - 1746-1049
pISSN - 0012-1533
DOI - 10.1111/deve.12032
Subject(s) - product innovation , relevance (law) , original equipment manufacturer , business , zombie , innovation process , knowledge production , product (mathematics) , industrial organization , marketing , knowledge management , computer science , work in process , political science , law , operating system , computer security , geometry , mathematics
This study investigates industrial innovation and innovation patterns in C hina with a comparison to the A sian N ewly I ndustrialized E conomies ( NIEs ). It estimates knowledge production functions based on an original firm‐level dataset. Estimation results suggest that even though firms in C hina carry out various innovation activities at the same time, the innovation pattern found among their counterparts in the A sian NIEs is still relevant for contemporary C hina. In particular, sourcing knowledge and technologies from their OEM customers still plays a crucial role for C hinese firms' process innovation. In contrast, firms cannot rely on this knowledge source for realizing more sophisticated, knowledge‐intensive innovation outcomes, such as product innovation and patenting, for which their own R&D engagement is more significant.