Template-type: ReDIF-Paper 1.0
Author-Name: Urem, Branka
Author-Email: urem@merit.unu.edu
Author-Workplace-Name: UNU-MERIT
Author-Name: Alcorta, Ludovico
Author-Email: alcorta@msm.nl
Author-Workplace-Name: Maastricht School of Management
Author-Name: An, Tongliang
Author-Email: atliang@nju.edu.cn
Author-Workplace-Name: School of Business, Nanjing University
Title: The Innovativeness of Foreign Firms in China
Abstract: This paper studies the relationship between foreign ownership and 
	 innovations of high novelty in context of advanced developing countries. 
	 We develop hypotheses about a direct relationship in terms of two 
	 dimensions, propensity and intensity of innovations of high novelty, and 
	 a contingency hypothesis about the moderating impact of R&D 
	 internationalisation on the relationship with propensity. The analysis 
	 is based on innovation survey data on manufacturing firms from Jiangsu 
	 province of China. Hypotheses are tested using non-parametric methods. 
	 We find that foreign firms do not have a higher propensity of 
	 innovations of high novelty, not even when they engage in formal R&D. 
	 However, the evidence suggests that foreign firms have a higher 
	 intensity of innovations of high novelty than domestic firms.
Classification-JEL: F23, L60, O31, O32
Keywords: multinational enterprises, foreign firms, innovation, manufacturing,
	 China
Series: UNU-MERIT Working Papers
Creation-Date: 2008
Number: 019
File-URL: http://www.merit.unu.edu/publications/wppdf/2008/wp2008-019.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2008019