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Article
Publication date: 11 February 2019

Exploring the complementarity between product exports and foreign technology imports for innovation in emerging economic firms

Kui Wang and Wang Tao

The purpose of this study is to advance and test the idea that product exports and technology imports are complementary cross-border learning approaches for emerging…

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Abstract

Purpose

The purpose of this study is to advance and test the idea that product exports and technology imports are complementary cross-border learning approaches for emerging market firms’ innovation performance. In addition, this paper also seeks to search for contextual variables that affect this complementarity.

Design/methodology/approach

This study takes systems approach to examine complementarity, combining a “productivity” and an “adoption” approach. In addition, interaction approach is also used as robustness check.

Findings

The authors show that the positive effect of export activity on firms’ growth rate is higher for firms that also engage in technology import, and vice versa. Furthermore, they show that, Ceteris paribus, firms’ adoption of one cross-border learning mechanism (e.g. entering export markets) positively influences the adoption of the other (e.g. technology import). Moreover, this complementarity is only significant for firms from province with low level of marketization.

Research limitations/implications

This inconsistency about learning-by-exporting and technology import on innovation can be resolved, at least partially, by the complementarities perspective. This paper also reveals two mechanisms of learning-by-exporting: the indirect effect of export on innovation through increasing the likelihood of adoption decision of importing technology and enhancing the positive effect of technology imports.

Practical implications

The potential of combining the two strategies should not be ignored by managers. To improve regional competitiveness, local governments should try best to improve the efficiency of customs to help firms realize the synergistic effect of learning-by- exporting and learning-by-technology-importing.

Originality/value

This study first explores the positive complementarity between the two cross-border learning mechanism in sharping EEEs 2019 innovation performance and identifies the condition to realize the synergistic effect of learning-by-exporting and learning-by-technology-importing.

Details

European Journal of Marketing, vol. 53 no. 2
Type: Research Article
DOI: https://doi.org/10.1108/EJM-10-2017-0683
ISSN: 0309-0566

Keywords

  • Export
  • Product innovation
  • Complementarity
  • Emerging economics firms
  • Technology import

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Article
Publication date: 3 August 2015

Effects of technological innovation on eco-efficiency of industrial enterprises in China

Liang Wan, Biao Luo, Tieshan Li, Shanyong Wang and Liang Liang

– This paper aims to investigate the relation between technological innovation modes and their impact on eco-efficiency of industrial enterprises in China.

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Abstract

Purpose

This paper aims to investigate the relation between technological innovation modes and their impact on eco-efficiency of industrial enterprises in China.

Design/methodology/approach

This paper first constructs a model to evaluate and measure the eco-efficiency of industrial enterprises in China from 2006 to 2010. Second, this paper compares the role of technological innovation modes – specifically, domestic independent innovation, foreign technology import and domestic technology transfer – in improving eco-efficiency of industrial enterprises in the Eastern, Central and Western regions of China by logarithmic regression.

Findings

The study finds that domestic independent innovation has a positive significant influence in improving eco-efficiency of industrial enterprises in the Eastern region; domestic technology transfer has a positive significant role in the Central region; and foreign technology import and domestic technology transfer positively affect the Western region.

Originality/value

This paper is the first to identify the role of technological innovation modes in improving eco-efficiency. The findings can help enterprises in the three regions adopt the most effective technological innovation mode. In addition, the results provide valuable insights into policy development to improve China’s overall eco-efficiency and to balance economic and industrial development among the three regions.

Details

Nankai Business Review International, vol. 6 no. 3
Type: Research Article
DOI: https://doi.org/10.1108/NBRI-01-2015-0003
ISSN: 2040-8749

Keywords

  • Eco-efficiency
  • Domestic independent technology innovation
  • Domestic technology transfer
  • Foreign technology import

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Article
Publication date: 2 August 2011

Linkages and technology spillovers in the presence of foreign firms: Evidence from the Indian pharmaceutical industry

Sanja Samirana Pattnayak and Shandre M. Thangavelu

This paper aims to examine production linkage and technology spillovers due to the presence of foreign firms in the Indian pharmaceutical industry.

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Abstract

Purpose

This paper aims to examine production linkage and technology spillovers due to the presence of foreign firms in the Indian pharmaceutical industry.

Design/methodology/approach

This study employs the semi‐parametric estimation method suggested by Olley and Pakes to control for unobserved firm heterogeneity that accounts for the endogeneity of input selection with respect to productivity.

Findings

The results suggest that R&D activities of foreign firms lead to positive technology spillover to local firms. However, we also found negative linkage from the activities of foreign firms. The negative linkage could be explained by the large reverse engineering activities that occur on existing drugs in the Indian pharmaceutical industry, where the enclave activities of foreign firms might be a preemptive strategy to reduce the flow of technologies to downstream local firms and to protect their firm‐specific (product) technology.

Originality/value

The results provide support for strong institutional arrangements such as giving protection for Intellectual Property Rights, which might be important for attracting and creating linkages with activities of foreign firms in the host country.

Details

Journal of Economic Studies, vol. 38 no. 3
Type: Research Article
DOI: https://doi.org/10.1108/01443581111152391
ISSN: 0144-3585

Keywords

  • Olley‐Pakes
  • Spillovers
  • Backward linkage
  • Pharmaceuticals industry
  • India

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Article
Publication date: 24 October 2008

In pursuit of technological innovation: China's science and technology policies and financial and fiscal incentives

Xuedong Ding, Jun Li and Jia Wang

This paper intends to examine the change of R&D fiscal policies in China since 1978 and its impact on China's drive to become an innovation‐oriented country.

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Abstract

Purpose

This paper intends to examine the change of R&D fiscal policies in China since 1978 and its impact on China's drive to become an innovation‐oriented country.

Design/methodology/approach

This paper adopts an archive approach and undertakes an overview of the policy changes and their implications.

Findings

It is found that policy changes have gradually made enterprises the focal point of the national innovation system and that correspondingly a new financial and fiscal mechanism has been created to create incentives for innovation in firms.

Originality/value

This paper provides a comprehensive overview of the changing financial and fiscal policies in support of technological innovation in China.

Details

Journal of Small Business and Enterprise Development, vol. 15 no. 4
Type: Research Article
DOI: https://doi.org/10.1108/14626000810917889
ISSN: 1462-6004

Keywords

  • Sciences
  • Technology led strategy
  • Innovation
  • Research and development
  • Government policy
  • China

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Article
Publication date: 1 June 1997

An overview of the experiences of Chinese industrialization strategies and development

Lisa Li and Gerald Vinten

Analyses China’s experience in import substituting industrialization (ISI), the trend towards export‐oriented industrialization (EOI) through expounding its economic…

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Abstract

Analyses China’s experience in import substituting industrialization (ISI), the trend towards export‐oriented industrialization (EOI) through expounding its economic performance and its policies from 1949 to 1995. Focuses on analysing the nature of two different development models: Mao’s closed economy and Deng Xiao Ping’s open‐door economy during this period. Discusses whether it is ISI or EOI that leads to development and economic growth in China.

Details

Managerial Auditing Journal, vol. 12 no. 4/5
Type: Research Article
DOI: https://doi.org/10.1108/02686909710173858
ISSN: 0268-6902

Keywords

  • China
  • Economic growth
  • Foreign investment
  • International trade
  • Newly industrializing economies
  • Social market economy

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Article
Publication date: 1 December 1997

A historical perspective of Japanese innovation

Paul Herbig and Laurence Jacobs

Japan’s economic success has been based primarily on social innovation. Western technology was accepted and used in institutions which retained their pure Japanese…

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Abstract

Japan’s economic success has been based primarily on social innovation. Western technology was accepted and used in institutions which retained their pure Japanese culture. Covers historical influences on and factors underpinning Japanese innovation. Concludes that traditional Japanese culture still affects the country’s economy (the producer is more important than the individual in industrial policy; established stakeholders are preferred to newcomers, etc.). Thus, Japan’s economy is a command economy, rather than a free‐market economy, which has various repercussions on trade.

Details

Management Decision, vol. 35 no. 10
Type: Research Article
DOI: https://doi.org/10.1108/00251749710192084
ISSN: 0025-1747

Keywords

  • Economy
  • Innovation
  • Japan
  • National cultures

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Article
Publication date: 14 January 2019

Innovation inputs and efficiency: manufacturing firms in Sub-Saharan Africa

Laura Barasa, Patrick Vermeulen, Joris Knoben, Bethuel Kinyanjui and Peter Kimuyu

Countries in Africa have a common goal policy of industrialisation that is expected to be driven by investing in innovation that yields efficiency. The purpose of this…

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Abstract

Purpose

Countries in Africa have a common goal policy of industrialisation that is expected to be driven by investing in innovation that yields efficiency. The purpose of this paper is to investigate the technical efficiency effects arising from innovation inputs including internal R&D, human capital development (HCD), and foreign technology adoption in manufacturing firms in Africa.

Design/methodology/approach

This study uses cross-sectional firm-level survey data from the 2013 World Bank Enterprise Survey and the linked 2013 Innovation Follow-up Survey. A heteroscedastic half-normal stochastic frontier is used for analysing the technical efficiency effects of innovation inputs of 418 firms.

Findings

This study reveals that internal R&D, and foreign technology have negative effects on technical efficiency. Notwithstanding, the combination of foreign technology and internal R&D, and foreign technology and HCD reinforce each other’s effects on technical efficiency.

Practical implications

This study provides evidence that whereas individual innovation inputs may not yield positive efficiency outcomes, the combination of absorptive capacity enhancing inputs comprising internal R&D and HCD with foreign technology is vital for enhancing technical efficiency in manufacturing firms in Africa. This study offers important lessons for managers in manufacturing firms in Africa.

Originality/value

This study is virtually the first to investigate the relationship between innovation inputs and efficiency in Africa. This study demonstrates that investing in foreign technology in isolation from absorptive capacity enhancing innovation inputs diminishes efficiency. HCD and internal R&D are imperative for building absorptive capacity that enhances efficiency outcomes arising from foreign technology.

Details

European Journal of Innovation Management, vol. 22 no. 1
Type: Research Article
DOI: https://doi.org/10.1108/EJIM-11-2017-0176
ISSN: 1460-1060

Keywords

  • Africa
  • Manufacturing
  • Technical efficiency
  • R&D
  • Human capital development
  • Foreign technology adoption

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Article
Publication date: 1 June 2004

China's entry to WTO: global marketing issues, impact, and implications for China

James Agarwal and Terry Wu

The transition from a command economy to a market‐based economy has been remarkably successful in China. After 15 years of negotiations, China finally joined the World…

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Abstract

The transition from a command economy to a market‐based economy has been remarkably successful in China. After 15 years of negotiations, China finally joined the World Trade Organization (WTO) in December 2001. Because of trade and investment liberalization under the WTO, there will be greater competition between Chinese and foreign firms, both inside China and outside China. While there is a great deal of economic literature on China's entry to the WTO, there has been no research on the global marketing impact and implications of China's membership of the WTO. This paper is an attempt to fill this gap. The objective of this study is to examine the general impact of China's entry to the WTO and to assess the global marketing implications of specific trade‐related policy issues within the WTO framework for China. Eleven specific WTO policy issues are examined and several global marketing propositions offered in terms of the WTO's impact on and implications for China.

Details

International Marketing Review, vol. 21 no. 3
Type: Research Article
DOI: https://doi.org/10.1108/02651330410539620
ISSN: 0265-1335

Keywords

  • China
  • Trade
  • Direct investment
  • International marketing

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Article
Publication date: 4 January 2021

Transnational knowledge transfer or indigenous knowledge transfer: which channel has more benefits for China's high-tech enterprises?

Ping Deng and Hao Lu

This paper compares four external technology acquisition channels' (foreign technology transfer, exporting, inter-industry R&D spillover and domestic technology transfer…

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Abstract

Purpose

This paper compares four external technology acquisition channels' (foreign technology transfer, exporting, inter-industry R&D spillover and domestic technology transfer) contributions to Chinese high-tech enterprises' innovation in the moderating role of absorptive capacity (AC).

Design/methodology/approach

Using technological catch-up theory and China Statistics Yearbook on High Technology Industry, this research investigates 16 Chinese high-tech industries from 2004 to 2015 via negative binomial regression.

Findings

The results show that indigenous knowledge transfer improves foreign-funded enterprises' (FFEs) innovation, while transnational knowledge transfer is the main channel for state-owned enterprises' (SOEs) technology acquisition. AC strengthens the positive relationship between transnational knowledge transfer and innovation in SOEs and improves FFEs' innovation and exported tacit knowledge absorption.

Originality/value

This study contributes to the literature on external technology acquisition (ETA) and innovation by examining the different mechanism of ETA instead of isolated strategy considering the AC and ownership structure of Chinese high-tech enterprises, which enrich the technological catch-up theory.

Details

European Journal of Innovation Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
DOI: https://doi.org/10.1108/EJIM-07-2020-0269
ISSN: 1460-1060

Keywords

  • Absorptive capacity
  • Indigenous knowledge transfer
  • Innovation
  • Transnational knowledge transfer

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Article
Publication date: 3 April 2009

Inflows of foreign technology, indigenous productivity, and international competitiveness

Ning Li

The purpose of this paper is to investigate the role of cross‐border diffusion of technology as a contributor to national economic performance at both aggregate and…

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Abstract

Purpose

The purpose of this paper is to investigate the role of cross‐border diffusion of technology as a contributor to national economic performance at both aggregate and sectoral levels. Specifically, it aims to explore: the relationship between inflows of foreign technology and home country knowledge base; and the impact of international technology diffusion on indigenous productivity and international competitiveness.

Design/methodology/approach

Values of international trade in manufactured sectors as well as other data sources of economic and scientific performance are used to measure inflows of foreign technology, indigenous knowledge base, or international competitiveness at the aggregate and/or sectoral levels. This paper employs correlation and regression models for data analysis. Sectoral patterns are revealed based on various taxonomies for industrial systems.

Findings

At the aggregate level, it is found that there is a positive relationship between a nation's domestic knowledge base and inflows of foreign technology; and technology inflows, as well as home country knowledge base, significantly contribute to a nation's labor productivity (LP) and its international competitiveness. At the sectoral level, it is found that patterns of contribution from technology inflows to international competitiveness differ from industry to industry. There is a general trend of increase in the contributions from international technology inflows to a nation's international competitiveness over time and from lower to higher technology industries. However, for complex system technologies where tacit knowledge prevails, the diffusion of technology could be a significant challenge.

Originality/value

Empirical findings of this paper have significant public policy implications. National industrial policies should be sector‐specific to reflect the particular features of each industry. In the meantime, a proper balance must be kept between enhancing home country knowledge base and promoting inflows of foreign technology.

Details

Journal of Knowledge-based Innovation in China, vol. 1 no. 2
Type: Research Article
DOI: https://doi.org/10.1108/17561410910949364
ISSN: 1756-1418

Keywords

  • Technology led strategy
  • Economic performance
  • Economic growth
  • Productivity rate
  • Competitive strategy
  • Knowledge management

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