Adopting Knowledge From Reverse Innovations? Transnational Patents and Signaling From an Emerging Economy

Journal of International Business Studies, Forthcoming

43 Pages Posted: 24 Jun 2019

See all articles by Kenneth G. Huang

Kenneth G. Huang

National University of Singapore (NUS) - ISEM & NUS Business School

Jiatao Li

Hong Kong University of Science & Technology (HKUST) - Department of Management & Organization

Date Written: 2019

Abstract

Is there knowledge adoption of innovations from emerging economies? We theorize that, to help overcome information asymmetry across countries, granting patents to technology in the emerging economy of China can serve as a signal of technology potential and market opportunity to enhance technological knowledge adoption in a developed economy such as the United States. The effect may be greater in a complex technology sector with high information asymmetry than in a discrete technology sector, and in regions with less developed market intermediaries, where information asymmetry is high. Our difference-in-differences estimates using 4226 China–U.S. patent dyads and comparable U.S. patents support our hypotheses.

Keywords: reverse innovation, knowledge adoption, patent signaling, information asymmetry, emerging market

JEL Classification: O19, O31, O32, O34, F23

Suggested Citation

Huang, Kenneth Guang-lih and Li, Jiatao, Adopting Knowledge From Reverse Innovations? Transnational Patents and Signaling From an Emerging Economy (2019). Journal of International Business Studies, Forthcoming, Available at SSRN: https://ssrn.com/abstract=3401922

Kenneth Guang-lih Huang (Contact Author)

National University of Singapore (NUS) - ISEM & NUS Business School ( email )

Singapore, 117575
Singapore
+6566015059 (Phone)

HOME PAGE: http://sites.google.com/site/kennethhuang/

Jiatao Li

Hong Kong University of Science & Technology (HKUST) - Department of Management & Organization ( email )

5473
Clear Water Bay, Kowloon
Hong Kong, PRC
852-2358 7757 (Phone)

Do you want regular updates from SSRN on Twitter?

Paper statistics

Downloads
58
Abstract Views
378
rank
481,716
PlumX Metrics