Doing R&D and/or Importing Technologies: The Critical Importance of Firm Size in Taiwan’s Manufacturing Industries |
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Authors: | Chialin Chang Stéphane Robin |
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Institution: | (1) Department of Applied Economics, National Chung-Hsing University, 250 Kuo Kuang Road, Taichung, 402, Taiwan;(2) Department of Economics & Management, BETA-Céreq, University of Strasbourg 1, PEGE – 61 avenue de la Forêt Noire, F-67085 Strasbourg Cedex, France |
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Abstract: | We analyze the relationship between firm size and innovation inputs in Taiwan. Two inputs are considered: R&D and technology imports. Building on an existing theoretical framework, we test this relationship by estimating bivariate Tobit models in twenty 2-digit industries, using a panel of 27,754 firms observed from 1992 to 1995. We find that, in all industries, R&D intensity and/or technology imports intensity depend strongly on firm size, following an “inverted-U” pattern. Moreover, we find that most industries are only “mildly Schumpeterian”. Finally, our results provide some empirical evidence for complementarity between R&D and technology imports in the innovation process. |
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Keywords: | firm size inter-industry comparisons R& D technology imports |
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