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Agglomeration, ownership, and R&D activity: firm-level evidence from China’s electronics industry

Chih-Hai Yang () and Chia-Hui Huang ()
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Chih-Hai Yang: National Central University
Chia-Hui Huang: Aletheia University

Empirical Economics, 2018, vol. 54, issue 4, 1673-1696

Abstract: Abstract This paper examines the influences of spatial and research and development (R&D) agglomerations on firm R&D behaviour. Analysis of firm-level data from China’s electronics industry reveals that both spatial and R&D agglomerations are positively related to R&D, highlighting the importance of network effects of agglomeration. Multinational enterprises invest less in R&D compared with domestic firms, because they tend to allocate R&D activity to the parent firm, leaving their Chinese affiliates to focus on manufacturing. No significant difference in R&D investment is observed between state-owned enterprises and private firms in China. These findings are confirmed through various robustness checks.

Keywords: Agglomeration; Ownership; R&D; Spillover (search for similar items in EconPapers)
JEL-codes: D22 O32 (search for similar items in EconPapers)
Date: 2018
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