Does Innovation Matter for Chinese High-tech Exports? A Firm-level Analysis

Dahai Fu, Yanrui Wu, Yihong Tang

Research output: Contribution to journalArticle

3 Citations (Scopus)


This paper investigates the impact of innovation on export decisions of Chinese high-tech firms during the period of 2005–2007. Using a parametric, instrumental variable approach and a non-parametric matching method, we find that firm-level innovation efforts, measured by R&D spending and new product output, play only a minor role for domestic exporters. Foreign-invested firms dominate the high-tech exports but do not rely on indigenous innovation activities. These results demonstrate that the success of Chinese high-tech exports does not result from heavy R&D expenditure and technological progress. Moreover, different types of innovation measures show different impacts on the likelihood of exporting. The impacts of innovation on exporting vary widely across industries and Chinese regions.
Original languageEnglish
Pages (from-to)218-245
JournalFrontiers of Economics in China: selected publications from Chinese universities
Issue number2
Publication statusPublished - 2012


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