Productivity in China's high technology industry : regional heterogeneity and R&D

Zhang, R; Sun, K; Delgado, MS; Kumbhakar, SC

Abstract

This paper analyzes the impact of Research and Development (R&D) on the productivity of China's high technology industry. In order to capture important differences in the effect of R&D on output that arise from geographic and socioeconomic differences across three major regions in China, we use a novel semiparametric approach that allows us to model heterogeneities across provinces and time. Using a unique provincial level panel dataset spanning the period 2000–2007, we find that the impact of R&D on output varies substantially in terms of magnitude and significance across different regions. Results show that the eastern region benefits the most from R&D investments, however it benefits the least from technical progress, while the western region benefits the least from R&D investments, but enjoys the highest benefits from technical progress. The central region benefits from R&D investments more than the western region and benefits from technical progress more than the eastern region. Our results suggest that R&D investments would significantly increase output in both the eastern and central regions, however technical progress in the central region may further compound the effects of R&D on output within the region.

Citation

Zhang, R., Sun, K., Delgado, M., & Kumbhakar, S. (2012). Productivity in China's high technology industry : regional heterogeneity and R&D. Technological Forecasting and Social Change, 79(1), 127-141. https://doi.org/10.1016/j.techfore.2011.08.005

• Journal Article Type: Article
• Acceptance Date: Aug 4, 2011
• Publication Date: Jan 1, 2012
• Deposit Date: May 29, 2015
• Journal: Technological Forecasting and Social Change
• Print ISSN: 0040-1625
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 79
• Issue: 1
• Pages: 127-141
• DOI: https://doi.org/10.1016/j.techfore.2011.08.005
• Publisher URL: http://dx.doi.org/10.1016/j.techfore.2011.08.005
• Related Public URLs: http://www.journals.elsevier.com/technological-forecasting-and-social-change/