Demand Forces of Technical Change Evidence from the Chinese Manufacturing Industry

Konferenzbeitrag

This paper investigates the effect of market size on innovation activities across different durable good industries in the Chinese manufacturing sector. We use a potential market size measure driven only by changes in the Chinese income distribution which is exogenous to changes in prices and qualities of durable goods to instrument for actual future market size. Results indicate that an increase in market size by one percentage point leads to an increase of 4.4% in R&D inputs, an increase in labour productivity by 6.5% and an increase in the likelihood of a successful product innovation by about 1.1 percentage points. These findings are robust controlling for export behaviour of firms and supply side drivers of R&D.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2013: Wettbewerbspolitik und Regulierung in einer globalen Wirtschaftsordnung - Session: Economic Development and Technological Change ; No. D10-V1

Classification and Topics

• Classification: Wirtschaft ; Industrial Organization and Macroeconomics: Industrial Structure and Structural Change; Industrial Price Indices ; Innovation and Invention: Processes and Incentives ; Technological Change: Choices and Consequences; Diffusion Processes

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Beerli, Andreas ; Weiss, Franziska ; Zilibotti, Fabrizio ; Zweimüller, Josef
• Event: Veröffentlichung
• (who): ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
• (where): Kiel und Hamburg
• (when): 2013

Further information

• Handle: http://hdl.handle.net/10419/79980
• Last update: 10.03.2025, 11:41 AM CET