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Knowledge capital, innovation, and growth in China

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  • Fleisher, Belton M.
  • McGuire, William H.
  • Smith, Adam Nicholas
  • Zhou, Mi

Abstract

We study the relationship between industry-level investments in intangible knowledge capital (KC) and three key economic indicators in China. We find evidence consistent with the hypothesis that investments in KC are productivity-enhancing among domestically owned and foreign invested enterprises (FIEs). Consistent with other research, we find that China's KC generates new patents, but fewer than in major industrialized economies. Finally, we find that China's comparative advantage has shifted toward those sectors where domestic firms have made larger investments in KC, but this trend appears to be independent of the KC accumulated by FIEs.

Suggested Citation

  • Fleisher, Belton M. & McGuire, William H. & Smith, Adam Nicholas & Zhou, Mi, 2015. "Knowledge capital, innovation, and growth in China," Journal of Asian Economics, Elsevier, vol. 39(C), pages 31-42.
    • Handle: RePEc:eee:asieco:v:39:y:2015:i:c:p:31-42
    DOI: 10.1016/j.asieco.2015.05.002
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    Cited by:

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    2. Fleisher, Belton & McGuire, William & Su, Yaqin & Zhao, Min Qiang, 2018. "Innovation, Wages, and Polarization in China," MPRA Paper 87105, University Library of Munich, Germany.
    3. Li, Xing & Hou, Keqiang, 2019. "R&D based knowledge capital and future firm growth: Evidence from China’s Growth Enterprise Market firms," Economic Modelling, Elsevier, vol. 83(C), pages 287-298.
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    6. Roth, Felix, 2019. "Intangible Capital and Labour Productivity Growth: A Review of the Literature," Hamburg Discussion Papers in International Economics 4, University of Hamburg, Department of Economics.

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    More about this item

    Keywords

    Knowledge capital; Technology; Economic growth; Intellectual property; China;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • P33 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Relations, and Aid

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