Foreign competition, domestic knowledge base and innovation activities: Evidence from Chinese high-tech industries
•We examine how industry characteristics affect industry innovation activities in Chinese high-tech industries.•We find that foreign competition is positively associated with the intensity of buy activity, but negatively affects the intensity of make activity.•Domestic skill intensity weakens the im...
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Published in | Research policy Vol. 43; no. 2; pp. 414 - 422 |
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Main Authors | , , |
Format | Journal Article |
Language | English |
Published |
Amsterdam
Elsevier B.V
01.03.2014
Elsevier Sequoia S.A |
Subjects | |
Online Access | Get full text |
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Summary: | •We examine how industry characteristics affect industry innovation activities in Chinese high-tech industries.•We find that foreign competition is positively associated with the intensity of buy activity, but negatively affects the intensity of make activity.•Domestic skill intensity weakens the impact of foreign competitive pressure on industry innovation activities.
Using panel data analysis for a sample of Chinese high-technology industries from 1998 to 2008, this study examines how industry characteristics affect industry innovation activities. Differing from existing studies, our research considers the impact of foreign competition on innovation activities at industry level in a large emerging economy. The results indicate that the intensity of competition from foreign invested enterprises (FIEs) and domestic skill intensity affect industry buy and make activities. Foreign competition is positively associated with the intensity of buy activity, but negatively affects the intensity of make activity. Further, the findings show that domestic skill intensity weakens the impact of foreign competitive pressure on innovation activities. Our empirical evidence has important policy implications. |
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Bibliography: | ObjectType-Article-2 SourceType-Scholarly Journals-1 ObjectType-Feature-1 content type line 23 |
ISSN: | 0048-7333 1873-7625 |
DOI: | 10.1016/j.respol.2013.11.005 |