INDIGENOUS INNOVATION, FOREIGN TECHNOLOGY TRANSFER AND THE EXPORT PERFORMANCE OF CHINA’S MANUFACTURING INDUSTRIES

Ying Ma () and Abdul Rauf
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Ying Ma: Centre for Economic Development Research (CEDR), Economics and Management School of Wuhan University, Luojia Hill Wuhan, Hubei 430072, P. R. China
Abdul Rauf: #x2020;Economics and Management School of Wuhan University, Luojia Hill, Wuhan, Hubei 430072, P. R. China

The Singapore Economic Review (SER), 2020, vol. 65, issue 05, 1349-1366

Abstract: Although a well-established link is observable in the existing literature on innovation–export interplay, there is a lack of research investigating the distinct impact of a variety of channels for domestic innovation and foreign technology spillovers on export performance in a unified framework. This paper uses a two-digit 1998–2013 panel dataset to empirically investigate the impact of domestic innovation efforts, innovation capability, foreign knowledge spillovers and technology transfer on export performance of large-and-medium-sized industrial enterprises (LMEs) in China. We find that: First, domestic innovation efforts significantly promote industrial export performance, while there is lack of highly-skilled human capital in China which restricts the favorable impact of innovation on exports; Second, technology imported from foreign countries have increased export competitiveness in China. Furthermore, innovative activities of foreign enterprises have led to export boom and this spillover channel experience has a stronger effect on export than one emanating from imported technology; Third, on the whole, foreign knowledge spillover channels have been more effective drivers of export performance than domestic innovation efforts. Fourth, calculations based on contribution to trade balance indicator witness a recent increase in the domestic content of industrial exports in China.

Keywords: Indigenous innovation; foreign technology transfer; export performance; manufacturing industries; productivity (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1142/S0217590819400034

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