Complementarity between in-house R&D and technology purchasing: evidence from Chinese manufacturing firms
Jun Hou & Pierre Mohnen
#2011-048
In order to catch up with the technological frontier, firms, especially
in developing countries, try to acquire technological advancement
through internal R&D efforts as well as through external technology
sourcing activities. This study tests the existence of a complementarity
between in-house R&D and external technology acquisition in Chinese
manufacturing firms. We show that the two sources of technological
upgrading are complementary in stimulating product innovation across
small and medium size manufacturing firms in China, but not in
generating process innovation nor in achieving higher levels of labor
productivity.
Keywords: R&D, technology purchasing, complementarity, China, manufacturing JEL codes: O33