R&D organization, monitoring intensity, and innovation performance in chinese industry

Albert Guangzhou Hu
Authors registered in the RePEc Author Service: Guangzhou Hu and Albert Guangzhou Hu

Economics of Innovation and New Technology, 2003, vol. 12, issue 2, 117-144

Abstract: This paper examines the relationship between organizational design and technological innovation in Chinese industry. In a principal-agent model, monitoring intensity is an endogenously determined input to innovation production. A recursive system of an innovation production function and a monitoring intensity equation, where the latent monitoring intensity is indicated by the existence of an R&D organization, is estimated with a nonlinear two-stage estimator for a sample of large- and medium-sized Chinese state-owned enterprises. It is the first knowledge production function estimate for China's enterprises. I find that R&D organization affects innovation performance positively and significantly.

Keywords: R&D Organization; Knowledge Production; Weighted Nls; Chinese Industry (search for similar items in EconPapers)
Date: 2003
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Citations: View citations in EconPapers (5)

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DOI: 10.1080/10438590303124

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