State Ownership and Corporate Innovative Efficiency
49 Pages Posted: 29 May 2020
Date Written: April 1, 2020
In this paper, we investigate the innovative efficiency of SOEs in China. Innovative efficiency refers to output of patents per dollar spending of R&D expenditure. The data indicate that minority SOEs are substantially more innovatively efficient than nonSOEs and majority SOEs. The relative innovative efficiency of minority SOEs is more pronounced amongst firms with high financial constraints. The data are consistent with the view that, in the Chinese context, there are favorable benefits to partial state ownership through access to talent, connections, and technological resources that enable efficient patent outcomes from R&D expenditure.
Keywords: State Ownership, Innovative Efficiency, Financial Constraints
JEL Classification: G32, O32, L33
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