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...

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Main Authors:	Goh, Chorching, Li, Wei, Xu, Lixin Colin
Format:	Publications & Research
Language:	English en_US
Published:	World Bank Group, Washington, DC 2015
Subjects:	AGRICULTURAL PRODUCTION AGRICULTURE ANATOMY COMPETITIVENESS DECENTRALIZATION DEVELOPMENT RESEARCH ECONOMIC DEVELOPMENT ECONOMICS ELECTRICITY EQUIPMENT EQUIPMENTS FARMERS FARMS FOOD PROCESSING FOOD PRODUCTION FOREIGN DIRECT INVESTMENT HANDICRAFT HANDICRAFT PRODUCTS HOUSING ID INDUSTRIAL ECONOMIES INNOVATION INTEGRATION MACHINERY MANUFACTURING MANUFACTURING INDUSTRIES MARKET OPPORTUNITIES MATERIAL MEDIUM ENTERPRISES NEW TECHNOLOGY OPEN ACCESS PC PRIVATE SECTOR PRIVATE SECTOR DEVELOPMENT PRODUCTIVITY R&D R&D EXPENDITURES RESEARCH WORKING PAPERS RESULT RESULTS SCENARIO TECHNOLOGICAL INNOVATION TECHNOLOGY TRANSFER TELECOMMUNICATIONS TEXTILES USES VALIDITY WEB
Online Access:	http://documents.worldbank.org/curated/en/2015/02/23981047/rd-returns-spillovers-firm-incentives-evidence-china http://hdl.handle.net/10986/21450

id	okr-10986-21450
recordtype	oai_dc
spelling	okr-10986-214502021-04-23T14:04:02Z R&D Returns, Spillovers, and Firm Incentives : Evidence from China Goh, Chorching Li, Wei Xu, Lixin Colin AGRICULTURAL PRODUCTION AGRICULTURE ANATOMY COMPETITIVENESS DECENTRALIZATION DEVELOPMENT RESEARCH ECONOMIC DEVELOPMENT ECONOMICS ELECTRICITY EQUIPMENT EQUIPMENTS FARMERS FARMS FOOD PROCESSING FOOD PRODUCTION FOREIGN DIRECT INVESTMENT HANDICRAFT HANDICRAFT PRODUCTS HOUSING ID INDUSTRIAL ECONOMIES INNOVATION INTEGRATION MACHINERY MANUFACTURING MANUFACTURING INDUSTRIES MARKET OPPORTUNITIES MATERIAL MEDIUM ENTERPRISES NEW TECHNOLOGY OPEN ACCESS PC PRIVATE SECTOR PRIVATE SECTOR DEVELOPMENT PRODUCTIVITY R&D R&D EXPENDITURES RESEARCH WORKING PAPERS RESULT RESULTS SCENARIO TECHNOLOGICAL INNOVATION TECHNOLOGY TRANSFER TELECOMMUNICATIONS TEXTILES USES VALIDITY WEB 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. 2015-02-13T19:14:28Z 2015-02-13T19:14:28Z 2015-02 http://documents.worldbank.org/curated/en/2015/02/23981047/rd-returns-spillovers-firm-incentives-evidence-china http://hdl.handle.net/10986/21450 English en_US Policy Research Working Paper;No. 7191 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Group, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper East Asia and Pacific China
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	AGRICULTURAL PRODUCTION AGRICULTURE ANATOMY COMPETITIVENESS DECENTRALIZATION DEVELOPMENT RESEARCH ECONOMIC DEVELOPMENT ECONOMICS ELECTRICITY EQUIPMENT EQUIPMENTS FARMERS FARMS FOOD PROCESSING FOOD PRODUCTION FOREIGN DIRECT INVESTMENT HANDICRAFT HANDICRAFT PRODUCTS HOUSING ID INDUSTRIAL ECONOMIES INNOVATION INTEGRATION MACHINERY MANUFACTURING MANUFACTURING INDUSTRIES MARKET OPPORTUNITIES MATERIAL MEDIUM ENTERPRISES NEW TECHNOLOGY OPEN ACCESS PC PRIVATE SECTOR PRIVATE SECTOR DEVELOPMENT PRODUCTIVITY R&D R&D EXPENDITURES RESEARCH WORKING PAPERS RESULT RESULTS SCENARIO TECHNOLOGICAL INNOVATION TECHNOLOGY TRANSFER TELECOMMUNICATIONS TEXTILES USES VALIDITY WEB
spellingShingle	AGRICULTURAL PRODUCTION AGRICULTURE ANATOMY COMPETITIVENESS DECENTRALIZATION DEVELOPMENT RESEARCH ECONOMIC DEVELOPMENT ECONOMICS ELECTRICITY EQUIPMENT EQUIPMENTS FARMERS FARMS FOOD PROCESSING FOOD PRODUCTION FOREIGN DIRECT INVESTMENT HANDICRAFT HANDICRAFT PRODUCTS HOUSING ID INDUSTRIAL ECONOMIES INNOVATION INTEGRATION MACHINERY MANUFACTURING MANUFACTURING INDUSTRIES MARKET OPPORTUNITIES MATERIAL MEDIUM ENTERPRISES NEW TECHNOLOGY OPEN ACCESS PC PRIVATE SECTOR PRIVATE SECTOR DEVELOPMENT PRODUCTIVITY R&D R&D EXPENDITURES RESEARCH WORKING PAPERS RESULT RESULTS SCENARIO TECHNOLOGICAL INNOVATION TECHNOLOGY TRANSFER TELECOMMUNICATIONS TEXTILES USES VALIDITY WEB Goh, Chorching Li, Wei Xu, Lixin Colin R&D Returns, Spillovers, and Firm Incentives : Evidence from China
geographic_facet	East Asia and Pacific China
relation	Policy Research Working Paper;No. 7191
description	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.
format	Publications & Research
author	Goh, Chorching Li, Wei Xu, Lixin Colin
author_facet	Goh, Chorching Li, Wei Xu, Lixin Colin
author_sort	Goh, Chorching
title	R&D Returns, Spillovers, and Firm Incentives : Evidence from China
title_short	R&D Returns, Spillovers, and Firm Incentives : Evidence from China
title_full	R&D Returns, Spillovers, and Firm Incentives : Evidence from China
title_fullStr	R&D Returns, Spillovers, and Firm Incentives : Evidence from China
title_full_unstemmed	R&D Returns, Spillovers, and Firm Incentives : Evidence from China
title_sort	r&d returns, spillovers, and firm incentives : evidence from china
publisher	World Bank Group, Washington, DC
publishDate	2015
url	http://documents.worldbank.org/curated/en/2015/02/23981047/rd-returns-spillovers-firm-incentives-evidence-china http://hdl.handle.net/10986/21450
_version_	1764448296731934720

R&D Returns, Spillovers, and Firm Incentives : Evidence from China

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