2012
DOI: 10.1016/j.chieco.2012.04.005
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Do Imports Spur Incremental Innovation in the South?

Abstract: We estimate that a one-standard-deviation increase in a firm's import penetration ratio raises its likelihood of having engaged in an incremental innovation by 4.48% using a random-sampled firm survey in China. The estimate is close to those in Gorodnichenko, Svejnar and Terrell (2010). A number of empirical strategies rule out alternative explanations as sufficient drivers of our result. Competitive pressure from imports is shown to be an underlying mechanism through which imports spur incremental innovation.… Show more

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Cited by 19 publications
(8 citation statements)
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“…Imports of Intermediate inputs-Secondly, also contributes to knowledge by showing that the imports of intermediate inputs does not have a significant influence on new product and new process innovations for manufacturing SMEs in Sub-Saharan LDCs. This contributes to the literature on the influence of imports on innovation (Bloom et al, 2015;Lu and Ng, 2012;Paunov, 2011;Bloom et al, 2015;Lu and Ng, 2012;Paunov;Keller, 2002;Xu and Wang, 1999;Keller, 1999;Coe et al, 1997) by being likely the first to empirically examine whether SMEs in Sub-Saharan LDCs that import are more likely to introduce new product and process innovations. 3.…”
Section: Contributions To Knowledgementioning
confidence: 87%
“…Imports of Intermediate inputs-Secondly, also contributes to knowledge by showing that the imports of intermediate inputs does not have a significant influence on new product and new process innovations for manufacturing SMEs in Sub-Saharan LDCs. This contributes to the literature on the influence of imports on innovation (Bloom et al, 2015;Lu and Ng, 2012;Paunov, 2011;Bloom et al, 2015;Lu and Ng, 2012;Paunov;Keller, 2002;Xu and Wang, 1999;Keller, 1999;Coe et al, 1997) by being likely the first to empirically examine whether SMEs in Sub-Saharan LDCs that import are more likely to introduce new product and process innovations. 3.…”
Section: Contributions To Knowledgementioning
confidence: 87%
“…The sample period is from 2001 to 2013, and we have 2,234,545 observations of 436,514 manufacturing firms after data cleaning. 35 The matching results are shown in Table C2. 144,100 Notes: Specification 1 is the number of firms in our sample.…”
Section: Resultsmentioning
confidence: 99%
“… Lu and Ng (2012) also use firm‐level data to show that imports spur incremental innovation in China. …”
mentioning
confidence: 99%
“…On the other hand, exports may also lead Chinese micro-enterprises to be locked at the lower end of the global value chain controlled by developed countries, curbing the improvement of China's ability to innovate independently (Zhang et al, 2007). Regarding import, because the imported goods contain a certain proportion of advanced production equipment and key spare parts with high technical content, it is not only possible to form a complementary effect on the innovation activities of the micro-enterprise sector (learning effect in import), but also possible to produce alternative effects (competitive effects) (Kasahara & Rodrigue, 2008;Lu & Ng, 2012). Whatever the effect of imports on innovation activities is dominant, import factors need to be controlled.…”
Section: The Extent Of Opening To the Outside Worldmentioning
confidence: 99%