Imported Technology and R&D in the Taiwanese Electronic Industry

Lin‐Ti Tan and Amy R. Hwang

Review of Development Economics, 2002, vol. 6, issue 1, 77-90

Abstract: The paper identifies the R&D status of the Taiwanese electronics industry by employing a bivariate probit selectivity model to examine the relationship between imports of technology and inhouse R&D at the firm level. A complementary relationship between imported technology and inhouse R&D is observed, which implies that imported technology does not inhibit inhouse R&D in the Taiwanese electronic industry. However, technology‐importing enterprises have a higher average level of R&D expenditure than nonimporting ones, indicating that the R&D conducted in the industry is dominated by the adaptive R&D of the technology‐importing enterprises.

Date: 2002
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