Doing R&D and Importing Technology: an Empirical Investigation on Taiwan’s manufacturing firms

Chia-Lin Chang (changchialin@email.nchu.edu.tw) and Robin Stephane
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Robin Stephane: UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES) and CRESGE-LABORES-France

No 2004006, LIDAM Discussion Papers IRES from Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES)

Abstract: The objective of this paper is to identify the determinants of the decision to innovate in Taiwan. Three “innovation strategies” are considered : doing R&D only, importing technology only, and combining both. We estimate a Bivariate Probit on a panel of more than 27000 Taiwanese manufacturing firms observed from 1992 to 1995. Results suggest that the decision to R&D over the period was influenced by the prior changes in exportations at the industry level, whereas the decision to import technology is affected by the current changes. We identify a non-linear relationship between firm size and innovation. Moreover, older firms tend to innovate less, whereas market structure doesn’t affect the decision to innovate. These two results change when only high-tech industries are considered : the effect of firm’s age becomes insignificant, whereas a more concentrated market structure is shown to increase the probability to innovate.

Keywords: R&D; importation of technology; market structure; technological opportunities; high-tech industries; panel data; bivariate Probit. (search for similar items in EconPapers)
JEL-codes: L10 L20 O31 O33 (search for similar items in EconPapers)
Pages: 34
Date: 2004-03-01
New Economics Papers: this item is included in nep-dev, nep-ent, nep-ino, nep-sea and nep-tid
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Persistent link: https://EconPapers.repec.org/RePEc:ctl:louvir:2004006

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