Complementarity between In-house R&D and Technology Purchasing: Evidence from Chinese Manufacturing Firms |
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Authors: | Jun Hou Pierre Mohnen |
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Affiliation: | 1. UNU-MERIT, Maastricht University , Keizer Karelplein 19, Maastricht , 6211 TC , The Netherlands hou@merit.unu.edu;3. Maastricht University , Keizer Karelplein 19, Maastricht 6211 TC, The Netherlands;4. School of Business and Economics, Maastricht University, P.O. Box 616, Maastricht , 6200 MD , The Netherlands E-mail: p.mohnen@maastrichtuniversity.nl |
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Abstract: | In order to catch up with the current 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 whether these two sources of technology acquisition are complements or substitutes for each other in small- and medium-sized Chinese manufacturing firms. The evidence that we present shows some signs of complementarity between the two sources of knowledge in reaching a higher unconditional intensity of product innovation for firms with 100–300 employees and, in general, a significant degree of substitutability between them in achieving higher levels of labour productivity. |
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