Download this Paper Open PDF in Browser

Intra-Industry Knowledge Spillovers from Foreign Direct Investment in R&D: Evidence from a Chinese Science Park

34 Pages Posted: 17 Oct 2006  

Yasuyuki Todo

Waseda University

Weiying Zhang

Peking University - Department of Applied Economics

Li-An Zhou

Peking University - Guanghua School of Management

Date Written: October 1, 2006

Abstract

This study examines whether foreign direct investment generates intra-industry knowledge spillovers to domestically-owned firms, using firm-level panel data from a Chinese science park. Our analysis suggests that the R&D stock of foreign-owned firms has a positive effect on the productivity of domestic firms in the same industry, while the capital stock of foreign firms has no such effect. These results suggest that foreign firms' knowledge spills over within industries through their R&D activities, but not through their production activities. In addition, we find no evidence of spillovers from domestic firms or firms from Hong Kong, Macau, or Taiwan, suggesting that the size of knowledge spillovers is larger when the technology gap between source and recipient firms is larger.

Keywords: knowledge spillovers, foreign direct investment, R\&D activities, China

JEL Classification: F23, O12, O30

Suggested Citation

Todo, Yasuyuki and Zhang, Weiying and Zhou, Li-An, Intra-Industry Knowledge Spillovers from Foreign Direct Investment in R&D: Evidence from a Chinese Science Park (October 1, 2006). Available at SSRN: https://ssrn.com/abstract=938079 or http://dx.doi.org/10.2139/ssrn.938079

Yasuyuki Todo (Contact Author)

Waseda University ( email )

1-6-1 Nishi-Waseda
Shinjuku-ku, 1698050
Japan
81332080577 (Phone)

Weiying Zhang

Peking University - Department of Applied Economics ( email )

Beijing, 100871
China

Li-An Zhou

Peking University - Guanghua School of Management ( email )

Peking University
Beijing, Beijing 100871
China

Paper statistics

Downloads
327
Rank
75,896
Abstract Views
1,567