Agglomeration, ownership, and R&D activity: firm-level evidence from China’s electronics industry

Chih Hai Yang, Chia Hui Huang

Research output: Contribution to journalArticlepeer-review

5 Scopus citations

Abstract

This paper examines the influences of spatial and research and development (R&D) agglomerations on firm R&D behaviour. Analysis of firm-level data from China’s electronics industry reveals that both spatial and R&D agglomerations are positively related to R&D, highlighting the importance of network effects of agglomeration. Multinational enterprises invest less in R&D compared with domestic firms, because they tend to allocate R&D activity to the parent firm, leaving their Chinese affiliates to focus on manufacturing. No significant difference in R&D investment is observed between state-owned enterprises and private firms in China. These findings are confirmed through various robustness checks.

Original languageEnglish
Pages (from-to)1673-1696
Number of pages24
JournalEmpirical Economics
Volume54
Issue number4
DOIs
StatePublished - 1 Jun 2018

Keywords

  • Agglomeration
  • Ownership
  • R&D
  • Spillover

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