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Productivity in China's high technology industry : regional heterogeneity and R&D

Zhang, R, Sun, K, Delgado, MS and Kumbhakar, SC 2012, 'Productivity in China's high technology industry : regional heterogeneity and R&D' , Technological Forecasting and Social Change, 79 (1) , pp. 127-141.

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Abstract

This paper analyzes the impact of Research and Development (R&D) on the productivity of China's high technology industry. In order to capture important differences in the effect of R&D on output that arise from geographic and socioeconomic differences across three major regions in China, we use a novel semiparametric approach that allows us to model heterogeneities across provinces and time. Using a unique provincial level panel dataset spanning the period 2000–2007, we find that the impact of R&D on output varies substantially in terms of magnitude and significance across different regions. Results show that the eastern region benefits the most from R&D investments, however it benefits the least from technical progress, while the western region benefits the least from R&D investments, but enjoys the highest benefits from technical progress. The central region benefits from R&D investments more than the western region and benefits from technical progress more than the eastern region. Our results suggest that R&D investments would significantly increase output in both the eastern and central regions, however technical progress in the central region may further compound the effects of R&D on output within the region.

Item Type: Article
Schools: Schools > Salford Business School > Business and Management Research Centre
Journal or Publication Title: Technological Forecasting and Social Change
Publisher: Elsevier
Refereed: Yes
ISSN: 0040-1625
Related URLs:
Funders: Non funded research
Depositing User: Dr Kai Sun
Date Deposited: 29 May 2015 17:37
Last Modified: 29 Oct 2015 00:47
URI: http://usir.salford.ac.uk/id/eprint/34567

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