Short technology cycle time and firm innovation: Evidence from China

Junwei Shi and Jiajia Zhang

Research Policy, 2025, vol. 54, issue 8

Abstract: A theoretical model is developed in this study to account for how the technology cycle time affects firm innovation from the perspective of latecomers. Empirical estimations using data from listed companies in China from 1990 to 2022 are conducted. The results show that the more latecomer firms specialize in technologies with short TCTs, the more likely it is for them to enhance innovation performance. Moderating effects of human capital and R&D investment on the relationship between short TCT and firm innovation are verified. Moreover, the impacts of short TCT on firm innovation are stronger when firms are in environments with high uncertainty; when firms are in highly competitive, high-tech, and high reverse engineering industries; and when firms are private, capital-intensive, and in the earlier stages of the lifecycle. The findings offer new insights into the technological catch-up of latecomers in emerging economies by choosing technologies with short TCTs.

Keywords: Technology cycle time; Firm innovation; Technological catch-up; Human capital; R&D investment (search for similar items in EconPapers)
JEL-codes: D22 O12 O30 O31 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:respol:v:54:y:2025:i:8:s0048733325001349

DOI: 10.1016/j.respol.2025.105305

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