Does Innovation Matter for Chinese High-Tech Exports? A Firm-Level Analysis

Dahai Fu (), Yanrui Wu and Yihong Tang
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Yihong Tang: School of International Trade and Economics Central University of Finance and Economics, Beijing

No 11-21, Economics Discussion / Working Papers from The University of Western Australia, Department of Economics

Abstract: This paper examines the effect of innovation on export decision in Chinese high-tech firms during the period of 2005-2007. Using a parametric, instrumental variable approach and a non-parametric matching method, we find that firm-level innovation efforts, measured by R&D spending and new product output, play only a minor role for domestic exporters. Foreign-invested firms dominate the high-tech exports but do not rely on indigenous innovation activities. These results thus confirm prior findings that the success of Chinese high-tech exports does not result from heavy R&D expenditure and technological progress. Moreover, different types of innovation measures show different impacts on the likelihood of exporting. The impacts of innovation on exporting vary widely across industries and Chinese regions.

Pages: 41 pages
Date: 2011
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Related works:
Journal Article: Does Innovation Matter for Chinese High-Tech Exports? A Firm-Level Analysis (2012)
Working Paper: Does innovation matter for Chinese hightech exports? a firm-level analysis (2010)
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