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The Review of Economics and Statistics Vol. 87 No. 4 2005

R&D and Technology Transfer: Firm-Level Evidence from Chinese Industry

Albert G. Z. Hu1; Gary H. Jefferson2; Qian Jinchang3

1 National University of Singapore · 2 Brandeis University · 3 National Bureau of Statistics of China

Abstract

In bridging the technology gap with the OECD nations, developing economies have access to three avenues of technological advance: domestic R&D, technology transfer, and foreign direct investment. This paper examines the contributions of each of these avenues, as well as their interactions, to productivity within Chinese industry. Based on a large data set for China's large and medium-size enterprises, the estimation results show that in-house R&D significantly complements technology transfer—whether of domestic or foreign origin. Foreign direct investment, which we assume is an important channel of proprietary technology transfer, does not facilitate the transfer of market-mediated foreign technology.

DOI
10.1162/003465305775098143
Volume
87
Issue
4
Pages
780-786
Language
en
Sources
openalex crossref

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