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The Effect of R&D Inputs of China's High-tech Industry on Productivity

Dai Kui-zao

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Abstract

Based on the panel data of China's high-tech industries from 1995 to 2008, it uses the Malmquist productivity index to measure and decompose TFP of each industry. Considering FDI, technology import, capital intensity, enterprise size and ownership structure, it makes an empirical study on the effects of RD investment and RD manpower input to TFP, technological efficiency and technical progress. The results show that RD investment has a positive effect on the three variables, while RD manpower input has a positive effect on TFP and technological progress and a negative correlation with technical efficiency.

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What this paper is about

Based on the panel data of China's high-tech industries from 1995 to 2008, it uses the Malmquist productivity index to measure and decompose TFP of each industry. Considering FDI, technology import, capital intensity, enterprise size and ownership structure, it makes an empirical study on the effects of RD investment and RD manpower input to TFP, technological efficiency and technical progress. The results show that RD investment has a positive effect on the three variables, while RD manpower input has a positive effect on TFP and technological progress and a negative correlation with technical efficiency.

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Available abstract

Based on the panel data of China's high-tech industries from 1995 to 2008, it uses the Malmquist productivity index to measure and decompose TFP of each industry. Considering FDI, technology import, capital intensity, enterprise size and ownership structure, it makes an empirical study on the effects of RD investment and RD manpower input to TFP, technological efficiency and technical progress. The results show that RD investment has a positive effect on the three variables, while RD manpower input has a positive effect on TFP and technological progress and a negative correlation with technical efficiency.

Key concepts: Total factor productivity, Malmquist index, Panel data, Productivity, High tech, Technical progress, Investment (military), Economics

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