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R&D and Technology Transfer: Firm-Level Evidence from Chinese Industry

Albert G. Z. Hu, Gary H. Jefferson and Qian Jinchang
The Review of Economics and Statistics
Vol. 87, No. 4 (Nov., 2005), pp. 780-786
Published by: The MIT Press
Stable URL: http://www.jstor.org/stable/40042894
Page Count: 7
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Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
R&D;  and Technology Transfer: Firm-Level Evidence from Chinese Industry
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Abstract

In bridging the technology gap with the OECD nations, developing economies have access to three avenues of technological advance: domestic R&D, technology transfer, and foreign direct investiment. This paper examines the contributions of each of these avenues, as well as their interactions, to productivity within Chinese industry. Based on a large data set for China's large and medium-size enterprises, the estimation results show that in-house R&D significantly complements technology transfer--,whether of domestic or foreign origin. Foreign direct investment, which we assume is an important channel of proprietary technology transfer, does not facilitate the transfer of market-mediated foreign technology.

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