Template-type: ReDIF-Paper 1.0
Author-Name: Chen, Fang
Author-Workplace-Name: Chinese Academy of Sciences
Author-Name: Mohnen, Pierre
Author-Email: mohnen@merit.unu.edu
Author-Workplace-Name: UNU-MERIT, Maastricht University, and CIRANO
Title: FDI, R&D and Innovation Output in the Chinese Automobile Industry
Abstract: After joining the World Trade Organization (WTO), China witnessed a major inflow of Foreign 
	 Direct Investment (FDI). Many famous automobile firms of developed countries were attracted 
	 to invest in China to cooperate with domestic firms. This paper uses firm-level data of the 
	 Chinese automobile industry to analyze the determinants of, and the interrelationships between, 
	 innovation input and innovation output, and in particular whether FDI had any influence on these 
	 two aspects of innovation. A generalized tobit model will be estimated for both R&D and the 
	 share of innovative sales for 2002/2003 and 2005/2006. The findings show that FDI firms are 
	 less R&D intensive but, when they innovate in new products, they are more product innovative 
	 than domestic-funded firms. 
Classification-JEL: O14, L62, F21
Keywords: FDI, China, R&D, innovation, automobile industry
Series: UNU-MERIT Working Papers
Creation-Date: 2009
Number: 044
File-URL: http://www.merit.unu.edu/publications/wppdf/2009/wp2009-044.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2009044