Exploring the Relationship Between Different Technologically Improved Measures and Firm Performance: An Empirical Analysis Based on Manufacturing in Shanghai 1998-2003

ABSTRACT

The paper analyses the effect of R&D and technology import on firm performance in Shanghai. We consider R&D and technology spill-over to be heterogeneous treatments, and using econometric matching, we account for possible selection bias. Our results suggest that, when compared to companies without any treatment, firms that receive either or both of our treatments yield positive effects. Technology import spill-over significantly influences the firm’s profit and labor productivity, whereas R&D is more important for improving the firm’s Total Factor Productivity (TFP). It should be stressed that domestic companies in Shanghai should fully utilize the positive effects induced by the spillovers in technology trade to the joint companies and R&D activities.

Keywords:

Average treatment effect, econometric matching, firm performance, international technology spillovers, R&D.