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Foreign competition, domestic knowledge base and innovation activities: evidence from Chinese high-tech industries

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journal contribution
posted on 11.02.2015, 13:30 by Xiaohui Liu, Ian HodgkinsonIan Hodgkinson, Fu-Mei Chuang
Using panel data analysis for a sample of Chinese high-technology industries from 1998 to 2008, this study examines how industry characteristics affect industry innovation activities. Differing from existing studies, our research considers the impact of foreign competition on innovation activities at industry level in a large emerging economy. The results indicate that the intensity of competition from foreign invested enterprises (FIEs) and domestic skill intensity affect industry buy and make activities. Foreign competition is positively associated with the intensity of buy activity, but negatively affects the intensity of make activity. Further, the findings show that domestic skill intensity weakens the impact of foreign competitive pressure on innovation activities. Our empirical evidence has important policy implications.

History

School

  • Business and Economics

Department

  • Business

Published in

Research Policy

Volume

43

Issue

2

Pages

414 - 422

Citation

LIU, X., HODGKINSON, I.R. and CHUANG, F-M., 2014. Foreign competition, domestic knowledge base and innovation activities: evidence from Chinese high-tech industries. Research Policy, 43 (2), pp. 414 - 422.

Publisher

© Elsevier B.V.

Version

AM (Accepted Manuscript)

Publisher statement

This work is made available according to the conditions of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) licence. Full details of this licence are available at: https://creativecommons.org/licenses/by-nc-nd/4.0/

Acceptance date

13/11/2013

Publication date

2013-12-17

Notes

NOTICE: this is the author’s version of a work that was accepted for publication in Research Policy. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Research Policy 43 (2), March 2014, DOI: 10.1016/j.respol.2013.11.005

ISSN

0048-7333

Other identifier

S0048733313002199

Language

en