Factors Influencing Innovation and Industrial Performance in Chinese Manufacturing Industry

Nnaemeka Vincent Emodi (), Girish Panchakshara Murthy, Chinenye Comfort Emodi and Adaeze Saratu Augusta Emodi
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Nnaemeka Vincent Emodi: College of Business, Law, and Governance, James Cook University, Cairns, Australia
Girish Panchakshara Murthy: #x2020;Department of Finance, IBS Hyderabad, IFHE University, India
Chinenye Comfort Emodi: #x2021;Department of Computer Science, Michael Okpara University of Agriculture, Umudike, Nigeria
Adaeze Saratu Augusta Emodi: #xA7;Abia State University, Uturu, Nigeria

International Journal of Innovation and Technology Management (IJITM), 2017, vol. 14, issue 06, 1-32

Abstract: This study investigates the factors influencing the Chinese manufacturing industry’s innovation and industrial performance utilizing a panel data approach on a sample of Chinese manufacturing enterprises over the period of 2008–2013. The industries were grouped according to related sectors into five groups, a general group was also created which included the whole data sample. The study found that research and development (R&D) expenditure positively influenced the growth of product innovation and industrial performance, but not necessarily knowledge innovation and export performance. Also, expenditure on new product development had a positive impact on both innovation and industrial performance. The growth of patent application was discovered to be influenced by an R&D project and foreign patent license. Finally, the number of enterprises and firm size (i.e. number of employees) contributed positively to the industrial output performance. The findings suggest that industrial R&D and new product development influences the success of product innovation and sales performance. The study recommends that the government should set up policies that will stimulate industrial R&D, while supporting technology transfers from foreign partners. Most importantly, government policies on the development of the industry should be addressed on a sectorial level and not a “one-size-fit-all” type of policy.

Keywords: China manufacturing industry; innovation; industrial performance; R&D; patent (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (2)

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DOI: 10.1142/S0219877017500407

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