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R&D and Taiwan-Based Firm’s Productivity - Does Internal Technological Capability Matter?

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  • To-Han Chang
  • Wen-Bin Chuang

Abstract

The purpose of this study is to examine the influence of overseas R&D on firm productivity. In particular, we further consider the moderating effect of internal technological capability. To provide more empirical evidence, this analysis takes advantage of a longitudinal dataset covering the 2009-2013 period and the system-GMM approach is employed in the empirical analysis to control for the problem of endogeneity. The empirical results show that overseas R&D has a significant influence on their firm productivity. Moreover, internal technological capability is found to play a significant moderating role in strengthening the influence of overseas R&D on firm productivity.

Suggested Citation

  • To-Han Chang & Wen-Bin Chuang, 2016. "R&D and Taiwan-Based Firm’s Productivity - Does Internal Technological Capability Matter?," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 6(9), pages 499-509.
    • Handle: RePEc:asi:aeafrj:v:6:y:2016:i:9:p:499-509:id:1501
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