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How ICT and R&D affect productivity? Firm level evidence for China

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Listed:
  • Facang Zhu
  • Qianqian Li
  • Shichun Yang
  • Tomas Balezentis

Abstract

Based on an extended three-step CDM model, this paper addresses the impacts of research and development (R&D) and information and communication technology (ICT) on firm productivity for the World Bank innovation survey data of China. The study includes ICT investment and R&D as the two main inputs into innovation and productivity. We find that R&D and ICT investments positively affect product innovation and process innovation, with R&D being more important for innovation and productivity, and ICT being more important for innovation and no direct effect on productivity. We conclude that R&D and ICT investments increase the probability of product innovation and process innovation, which increase firm’s productivity, suggesting that R&D and ICT investments indirectly affect productivity through innovation.

Suggested Citation

  • Facang Zhu & Qianqian Li & Shichun Yang & Tomas Balezentis, 2021. "How ICT and R&D affect productivity? Firm level evidence for China," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 34(1), pages 3468-3486, January.
    • Handle: RePEc:taf:reroxx:v:34:y:2021:i:1:p:3468-3486
    DOI: 10.1080/1331677X.2021.1875861
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    Cited by:

    1. Danish, & Khan, Salahuddin & Haneklaus, Nils, 2023. "Sustainable economic development across globe: The dynamics between technology, digital trade and economic performance," Technology in Society, Elsevier, vol. 72(C).
    2. Swapnilsingh Thakur & Shailesh Rastogi & Neha Parashar & Pracheta Tejasmayee & Jyoti Mehndiratta Kappal, 2023. "The Impact of ICT on the Profitability of Indian Banks: The Moderating Role of NPA," JRFM, MDPI, vol. 16(4), pages 1-16, March.
    3. Mokthtari Moughari, Mahdieh & Daim, Tugrul U., 2023. "Developing a model of technological innovation for export development in developing countries," Technology in Society, Elsevier, vol. 75(C).
    4. Chengde You & Huishan Qiu & Zhuojie Pi & Mengyuan Yu, 2023. "Sustainable Enterprise Development in the Manufacturing Sector: Flexible Employment and Innovation in China," Sustainability, MDPI, vol. 15(10), pages 1-30, May.
    5. Bilan, Yuriy & Oliinyk, Olena & Mishchuk, Halyna & Skare, Marinko, 2023. "Impact of information and communications technology on the development and use of knowledge," Technological Forecasting and Social Change, Elsevier, vol. 191(C).

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