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Independent R and D, Technology Introduction, and Green Growth in China’s Manufacturing

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  • Zhonghua Cheng

    (China Institute of Manufacturing Development, Nanjing University of Information Science & Technology, Nanjing 210044, China)

  • Wenwen Li

    (School of Economics and Management, Southeast University, Nanjing 210096, China)

Abstract

An analysis of not only the effects of independent research and development (R and D), but also of the effects of the introduction of domestic and foreign technology on the growth of green manufacturing, can help China achieve the green transformation of manufacturing. In this paper we first use a non-directional distance function (NDDF) and meta-frontier methods to calculate a green growth index. Then, using 2003 to 2015 manufacturing panel data, we empirically test the effects of three different types of R and D investment on the green growth of China’s manufacturing. The regression results show that there is significant industrial heterogeneity in the effects of independent R and D, in the introduction of domestic technology and in the introduction of foreign technology on the green growth of China’s manufacturing. Independent R and D is conducive to the green growth of the three types of technological industries, but the contribution of independent R and D to green growth has gradually weakened with improvements in industrial technology. Domestic technology introduction is conducive to green growth in low and middle-technology industries, but its effect on high-technology industries is not significant. On the other hand, foreign technology introduction is conducive to the green growth of middle and high-technology industries, but its effect on low-technology industries is not significant.

Suggested Citation

  • Zhonghua Cheng & Wenwen Li, 2018. "Independent R and D, Technology Introduction, and Green Growth in China’s Manufacturing," Sustainability, MDPI, vol. 10(2), pages 1-14, January.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:2:p:311-:d:128748
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