Government support, international trade and firm's R&D investment: Evidence from Chinese high-tech industries

Li, Z.-W. and Millman, Cindy and Chi, R.-Y. (2011) Government support, international trade and firm's R&D investment: Evidence from Chinese high-tech industries. Journal of Science and Technology Policy in China, 2 (2). pp. 146-158. ISSN 1758552X (ISSN)

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Purpose: Innovation is becoming the key approach for firms to achieve sustainable competitive advantages. The purpose of this paper is to examine whether government public R&D subsidies have a positive impact on firms' private R&D investment (RDI) under globalization; this paper also investigates the impact of international trade on firms' private RDI in China. Design/methodology/approach: The paper empirically tests the government support and international trade on firms' private RDI. An online survey was conducted as well as collaborated with the Department of Science and Technology of Zhejiang Province in 2006. The sample was obtained from more than 1,000 firms in high-tech industries in Zhejiang province, and covers the year 2003-2005. Linear regression was used for the firm-level estimations. Findings: The empirical results indicate that public R&D subsidies and disembodied technology imports positively and significantly impact on firms' private RDI, while non-high-tech product exports and embodied technology imports do not have positive effects. Moreover, the results show that high-tech product exports are positively associated with firms' private RDI but not significantly. Originality/value: The paper's findings extend the existing understanding of the determinants of firms' RDI in less developed countries, such as China. Moreover, unlike most extant studies, the authors investigate different types of exports and imports and their impacts on firms' RDI, respectively. © Emerald Group Publishing Limited.

Item Type: Article
Identification Number:
July 2011Published
Uncontrolled Keywords: China, Competitive advantage, Governmental support, High-tech industries, International trade, R&D investment, Research and development
Subjects: CAH17 - business and management > CAH17-01 - business and management > CAH17-01-02 - business studies
Divisions: Faculty of Business, Law and Social Sciences > Birmingham City Business School
Depositing User: Hussen Farooq
Date Deposited: 10 Feb 2017 12:23
Last Modified: 22 Mar 2023 11:49

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