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Innovation Strategy and Total Factor Productivity Growth : Micro Evidence from Taiwanese Manufacturing Firms

Author

Listed:
  • Chia Lin, CHANG

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES))

  • Stephane, ROBIN

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES) and CRESGE-LABORES-France)

Abstract
This paper investigates the relationship between firms’ innovation practices and performance in Taiwan. Using a panel of 4000 firms, we examine the effects of importing technology (versus doing R&D) on Total Factor Porductivity (TFP) growth. The relationship between these two innovation strategies is also explored. We find that R&D strongly contributes to the growth of TFP, whereas the importation of technology is only weakly significant, which makes it difficult to qualify the type of relationship (complementarity or substitutability) that exists between the two innovation strategies.

Suggested Citation

  • Chia Lin, CHANG & Stephane, ROBIN, 2004. "Innovation Strategy and Total Factor Productivity Growth : Micro Evidence from Taiwanese Manufacturing Firms," LIDAM Discussion Papers IRES 2004007, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    • Handle: RePEc:ctl:louvir:2004007
    as

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    File URL: http://sites.uclouvain.be/econ/DP/IRES/2004-7.pdf
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Importation of technology; Newly industrializzed countries; Productivity growth; Firm-level panel data; Manufacturing industries;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • F20 - International Economics - - International Factor Movements and International Business - - - General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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