Firm Performance and Knowledge Spillovers from Academic, Industrial and Foreign Linkages: The Case of China

Journal of Productivity Analysis, Forthcoming

Posted: 26 Nov 2011

See all articles by Mahmut Yasar

Mahmut Yasar

University of Texas at Arlington - Department of Economics; Emory University - Department of Economics

Catherine J. Morrison Paul

University of California, Davis - Department of Agricultural and Resource Economics; National Bureau of Economic Research (NBER); University of Hartford - Barney School of Business

Date Written: November 25, 2011

Abstract

Firm performance may be enhanced by linkages with academic institutions, other firms, and foreign markets that confer knowledge spillovers as well as internal R&D that creates firm-specific knowledge. In particular, firm productivity and innovation may be enhanced by positive externalities from knowledge and technology produced by universities and research institutions (URIs) and diffused to the domestic economy. Productive contributions from such linkages might be particularly expected in China, where policy measures have explicitly supported and facilitated connections between URIs and firms to stimulate economic development and competitiveness. In this paper, we measure the performance impact of such knowledge spillovers in Chinese firms by using a variety of specifications, estimators, and robustness checks, including an “IV” specification that controls for endogeneity. We find more patent activity in Chinese firms with URI connections and enhanced firm productivity particularly from linkages with research institutions (RIs). Introduction of new products, processes, and new businesses is also positively associated with linkages with research institutions, as well as with linkages with other firms.

Keywords: China, Knowledge Spillovers, Economic Performance, Research Institutions, University, Firm, and Foreign Linkages

JEL Classification: C26, D24, L60, O30, O53

Suggested Citation

Yasar, Mahmut and Morrison Paul, Catherine J., Firm Performance and Knowledge Spillovers from Academic, Industrial and Foreign Linkages: The Case of China (November 25, 2011). Journal of Productivity Analysis, Forthcoming, Available at SSRN: https://ssrn.com/abstract=1964854

Mahmut Yasar (Contact Author)

University of Texas at Arlington - Department of Economics ( email )

701 S. West Street
Arlington, TX 76019
United States

Emory University - Department of Economics ( email )

Catherine J. Morrison Paul

University of California, Davis - Department of Agricultural and Resource Economics ( email )

One Shields Avenue
Davis, CA 95616
United States
916-752-0469 (Phone)
916-752-5614 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

University of Hartford - Barney School of Business

200 Bloomfield Ave
West Hartford, CT 06117
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
353
PlumX Metrics