Can You Teach Old Dragons New Tricks ? FDI and Innovation Activity in Chinese State-Owned Enterprises

@inproceedings{Girma2005CanYT,
  title={Can You Teach Old Dragons New Tricks ? FDI and Innovation Activity in Chinese State-Owned Enterprises},
  author={Sourafel Girma and Y Q Gong and Holger G{\"o}rg},
  year={2005}
}
We investigate whether inward FDI, either at the firm or industry level, has any impact on product innovation by Chinese State owned enterprises (SOEs). We use a comprehensive firm level panel data set of some 30,000 SOEs covering the period 1999 to 2003. Our results show that foreign capital participation is associated with higher innovative activity. Inward FDI in the sector has a negative effect on innovative activity in SOEs. However, there is a positive effect of FDI on SOEs that export… CONTINUE READING

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