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Factors Influencing Innovation and Industrial Performance in Chinese Manufacturing Industry

Author

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  • Nnaemeka Vincent Emodi

    (College of Business, Law, and Governance, James Cook University, Cairns, Australia)

  • Girish Panchakshara Murthy

    (#x2020;Department of Finance, IBS Hyderabad, IFHE University, India)

  • Chinenye Comfort Emodi

    (#x2021;Department of Computer Science, Michael Okpara University of Agriculture, Umudike, Nigeria)

  • Adaeze Saratu Augusta Emodi

    (#xA7;Abia State University, Uturu, Nigeria)

Abstract

This study investigates the factors influencing the Chinese manufacturing industry’s innovation and industrial performance utilizing a panel data approach on a sample of Chinese manufacturing enterprises over the period of 2008–2013. The industries were grouped according to related sectors into five groups, a general group was also created which included the whole data sample. The study found that research and development (R&D) expenditure positively influenced the growth of product innovation and industrial performance, but not necessarily knowledge innovation and export performance. Also, expenditure on new product development had a positive impact on both innovation and industrial performance. The growth of patent application was discovered to be influenced by an R&D project and foreign patent license. Finally, the number of enterprises and firm size (i.e. number of employees) contributed positively to the industrial output performance. The findings suggest that industrial R&D and new product development influences the success of product innovation and sales performance. The study recommends that the government should set up policies that will stimulate industrial R&D, while supporting technology transfers from foreign partners. Most importantly, government policies on the development of the industry should be addressed on a sectorial level and not a “one-size-fit-all” type of policy.

Suggested Citation

  • Nnaemeka Vincent Emodi & Girish Panchakshara Murthy & Chinenye Comfort Emodi & Adaeze Saratu Augusta Emodi, 2017. "Factors Influencing Innovation and Industrial Performance in Chinese Manufacturing Industry," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 14(06), pages 1-32, December.
    • Handle: RePEc:wsi:ijitmx:v:14:y:2017:i:06:n:s0219877017500407
    DOI: 10.1142/S0219877017500407
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