R&D Returns, Spillovers, and Firm Incentives : Evidence from China
This paper uses a new data set of 12,000 firms in China to estimate the returns to research and development investment and its spillover effects, and investigates how the returns to research and development depend on firm incentives. For the firms...
| Main Authors: | , , |
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| Format: | Publications & Research |
| Language: | English en_US |
| Published: |
World Bank Group, Washington, DC
2015
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2015/02/23981047/rd-returns-spillovers-firm-incentives-evidence-china http://hdl.handle.net/10986/21450 |
| Summary: | This paper uses a new data set of 12,000
firms in China to estimate the returns to research and
development investment and its spillover effects, and
investigates how the returns to research and development
depend on firm incentives. For the firms in the sample, the
results show that on average firm output increases around
0.4 yuan for each additional 1 yuan spent on research and
development in the previous year, and there is high research
and development return regardless of whether the analysis
deals with the endogeneity of research and development
intensity. Interestingly, the marginal return to research
and development is significantly higher in firms whose chief
executive officers were not appointed by the government and
lower when the chief executive officer's pay is
directly related to annual performance. The return to
research and development is higher in relatively poor
regions and for firms with worse access to finance. There
are also non-trivial research and development spillover effects. |
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