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R&D organization, monitoring intensity, and innovation performance in chinese industry

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  • Albert Guangzhou Hu

Abstract

This paper examines the relationship between organizational design and technological innovation in Chinese industry. In a principal-agent model, monitoring intensity is an endogenously determined input to innovation production. A recursive system of an innovation production function and a monitoring intensity equation, where the latent monitoring intensity is indicated by the existence of an R&D organization, is estimated with a nonlinear two-stage estimator for a sample of large- and medium-sized Chinese state-owned enterprises. It is the first knowledge production function estimate for China's enterprises. I find that R&D organization affects innovation performance positively and significantly.

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  • Albert Guangzhou Hu, 2003. "R&D organization, monitoring intensity, and innovation performance in chinese industry," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 12(2), pages 117-144.
    • Handle: RePEc:taf:ecinnt:v:12:y:2003:i:2:p:117-144
    DOI: 10.1080/10438590303124
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    1. Yang, Chih-Hai & Matsuura, Toshiyuki & Ito, Tadashi, 2019. "R&D and patenting activities of foreign firms in China: The case of Japan," Japan and the World Economy, Elsevier, vol. 49(C), pages 151-160.
    2. Ucar, Erdem, 2018. "Local creative culture and corporate innovation," Journal of Business Research, Elsevier, vol. 91(C), pages 60-70.
    3. Chih-Chin Ho & Hui-Lin Lin & Chih-Hai Yang & Ya-Pin Lyu, 2017. "Productivity Catch-up Between Chinese and Taiwanese Electronics Firms," Pacific Economic Review, Wiley Blackwell, vol. 22(4), pages 533-553, October.
    4. Albert Guangzhou Hu & Gary H. Jefferson, 2010. "Technology Policy for Sustained Asian Dynamism," Chapters, in: Masahiro Kawai & Jong-Wha Lee & Peter A. Petri & Giovanni Capanelli (ed.), Asian Regionalism in the World Economy, chapter 2, Edward Elgar Publishing.
    5. Santos, David Ferreira Lopes & Basso, Leonardo Fernando Cruz & Kimura, Herbert & Kayo, Eduardo Kazuo, 2014. "Innovation efforts and performances of Brazilian firms," Journal of Business Research, Elsevier, vol. 67(4), pages 527-535.

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