The impact of technology transfer and R & D on productivity growth in Taiwanese industry: Microeconometric analysis using plant and firm-level data

Abstract This paper conducts a comparative empirical analysis of the impact of R & D spending and purchases of foreign technology on output and productivity in Taiwanese industry. We employ data from two different sources, providing an econometric perspective on this question at two different levels of aggregation. We first conduct empirical analysis using data from the Taiwanese government's industrial census of technological activities at the plant level. This study is, to the best of our knowledge, the first empirical analysis using these data. We complement these results with analyses of data at the firm level. The results of our regression analyses generally support the conclusion that both R & D spending and purchases of foreign technology have contributed positively to Taiwanese productivity growth. J. Japanese Int. Economies 20 (2) (2006) 177–192.

[1]  Elhanan Helpman,et al.  International R&D spillovers , 1995 .

[2]  AnnaLee Saxenian,et al.  The Silicon Valley-Hsinchu Connection: Technical Communities and Industrial Upgrading , 2001 .

[3]  Akira Goto,et al.  Innovation in Japan , 1997 .

[4]  Alwyn Young,et al.  The Tyranny of Numbers: Confronting the Statistical Realities of the East Asian Growth Experience , 1994 .

[5]  Lawrence J. Lau,et al.  The Sources of Economic Growth of the East Asian Newly Industrialized Countries , 1994 .

[6]  Firm-Level Evidence on Productivity Differentials, Turnover, and Exports in Taiwanese Manufacturing , 1997 .

[7]  A. Arora Licensing Tacit Knowledge: Intellectual Property Rights And The Market For Know-How , 1995 .

[8]  Rakesh Basant,et al.  The Effects of R&D, Foreign Technology Purchase, and Domestic and International Spillovers on Productivity in Indian Firms , 1996 .

[9]  R. Belderbos,et al.  Intra-firm technology transfer and R&D in foreign affiliates: Substitutes or complements? Evidence from Japanese multinational firms , 2008 .

[10]  Robert Z. Lawrence Japan?s Low Levels of Inward Investment: The Role of Inhibitions on Acquisitions , 1993 .

[11]  Lee G. Branstetter Innovation, knowledge spillovers, and dynamic comparative advantage : evidence from Japan and the United stataes , 1996 .

[12]  Jerry A. Hausman,et al.  Errors in Variables in Panel Data , 1984 .

[13]  Zvi Griliches,et al.  R&D and Productivity Growth at the Industry Level: Is There Still a Relationship? , 1998 .

[14]  R. Wade Governing the Market: Economic Theory and the Role of Government in East Asian Industrialization , 1991 .

[15]  Paul Krugman,et al.  The Myth of Asia's Miracle , 1994 .

[16]  Claudio R. Frischtak,et al.  International Technology Transfer: Concepts, Measures, and Comparisons , 1985 .

[17]  A. Arora Contracting for tacit knowledge: the provision of technical services in technology licensing contracts , 1996 .

[18]  A. Jaffe Technological Opportunity and Spillovers of R&D: Evidence from Firms&Apos; Patents, Profits and Market Value , 1986 .

[19]  Zvi Griliches,et al.  R&D, Patents, and Productivity , 1981 .

[20]  Hiroyuki Odagiri,et al.  R & D Expenditures, Royalty Payments, and Sales Growth in Japanese Manufacturing Corporations , 1983 .

[21]  B. Levy Transactions costs, the size of firms and industrial policy , 1990 .

[22]  Yishay Yafeh,et al.  A microeconometric analysis of technology transfer: The case of licensing agreements of Japanese firms , 1994 .

[23]  Jonathan Eaton,et al.  Trade in Ideas: Patenting and Productivity in the OECD , 1995 .

[24]  G. Grossman,et al.  Innovation and growth in the global economy , 1993 .

[25]  Larry Willmore,et al.  Technological Imports and Technological Effort: An Analysis of Their Determinants in Brazilian Firms , 1991 .

[26]  Zvi Griliches,et al.  Issues in Assessing the Contribution of Research and Development to Productivity Growth , 1979 .

[27]  Barry J. Naughton The China circle : economics and electronics in the PRC, Taiwan, and Hong Kong , 1997 .