The effect of R&D novelty and openness decision on firms' catch-up performance: Empirical evidence from China

DOI

10.2991/essaeme-17.2017.334How to use a DOI?

Keywords

Technological catch-up, China, Novelty Openness, R&D, Innovative performance

Abstract

This paper explores the strategic dimensions of R&D decisions toward novelty and openness in explaining the performance of latecomer firms in a developing economy. A structural equation model of R&D decision-making is formulated using survey data from 50 Chinese firms. The dimension of R&D novelty is defined as the degree of technological newness found in firms' R&D projects, while R&D openness describes the degree to which technologies are acquired from external sources. Our results indicate that firms' R&D decisions regarding novelty and openness are associated with demand opportunities, market competition, technological capability, and external networks. Greater R&D novelty contributes positively to innovative output but does not affect sales growth. Greater R&D openness contributes positively to sales growth but negatively to innovative output.

Copyright

© 2017, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Yuquan Zhong
AU  - Hongru Wu
PY  - 2017/07
DA  - 2017/07
TI  - The effect of R&D novelty and openness decision on firms' catch-up performance: Empirical evidence from China
BT  - Proceedings of the 2017 3rd International Conference on Economics, Social Science, Arts, Education and Management Engineering (ESSAEME 2017)
PB  - Atlantis Press
SN  - 2352-5398
UR  - https://doi.org/10.2991/essaeme-17.2017.334
DO  - 10.2991/essaeme-17.2017.334
ID  - Zhong2017/07
ER  -