Productivity in China's high technology industry: Regional heterogeneity and R&D

Rui Zhang, Kai Sun, Michael S. Delgado and Subal Kumbhakar

Technological Forecasting and Social Change, 2012, vol. 79, issue 1, 127-141

Abstract: This paper analyzes the impact of Research and Development (R&D) on the productivity of China's high technology industry. In order to capture important differences in the effect of R&D on output that arise from geographic and socioeconomic differences across three major regions in China, we use a novel semiparametric approach that allows us to model heterogeneities across provinces and time. Using a unique provincial level panel dataset spanning the period 2000–2007, we find that the impact of R&D on output varies substantially in terms of magnitude and significance across different regions. Results show that the eastern region benefits the most from R&D investments, however it benefits the least from technical progress, while the western region benefits the least from R&D investments, but enjoys the highest benefits from technical progress. The central region benefits from R&D investments more than the western region and benefits from technical progress more than the eastern region. Our results suggest that R&D investments would significantly increase output in both the eastern and central regions, however technical progress in the central region may further compound the effects of R&D on output within the region.

Keywords: China; Research and Development (R&D); Productivity; Semiparametric smooth coefficient model (SPSCM) (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (16)

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Working Paper: Productivity in China's high technology industry: Regional heterogeneity and R&D (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:tefoso:v:79:y:2012:i:1:p:127-141

DOI: 10.1016/j.techfore.2011.08.005

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