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 language | English |
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Pages (from-to) | 1673-1696 |
Number of pages | 24 |
Journal | Empirical Economics |
Volume | 54 |
Issue number | 4 |
DOIs | |
State | Published - 1 Jun 2018 |
Keywords
- Agglomeration
- Ownership
- R&D
- Spillover