Do state-owned enterprises influence technological development?

Eric Yan

Economics Letters, 2020, vol. 193, issue C

Abstract: A policymaker may intervene to lower royalties of licensed technology when state-owned firms have higher expenditures on technology. In this paper, we show that firms may more tend to imitate than to innovate when, due to this intervention, the marginal benefit of innovation shrinks in comparison with imitation. We empirically confirm this by comparing China to India, as these two countries promote state-owned firms to different degrees.

Keywords: In-house innovation vs. imitation; State-owned firms (search for similar items in EconPapers)
JEL-codes: F0 O3 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:193:y:2020:i:c:s0165176520302044

DOI: 10.1016/j.econlet.2020.109306

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