Knowledge Sourcing and Firm Performance in an Industrializing Economy: The Case of Taiwan (1992-2003)

39 Pages Posted: 7 May 2009

See all articles by Chia-Lin Chang

Chia-Lin Chang

National Chung Hsing University - Department of Applied Economics, Department of Finance

Stéphane Robin

University of Strasbourg - Bureau of Economic Theory and Application (BETA)

Date Written: May 7, 2009

Abstract

We examine the impact of R&D and technology imports on firm performance in Taiwan’s manufacturing industry in a policy context of industrial upgrading. To do so, we estimate a Translog production function on two panels (covering 1992-1995 and 1997-2003), using stochastic frontier estimation. We find that the effects of both knowledge inputs become significant (with evidence of complementarities) in a larger number of industries in the second panel. These results suggest that the policies encouraging innovation implemented from 1991 onwards paid off in the second half of the 1990s, with innovation driving firm sales. In traditional industries, the effect of innovation can be interpreted as an effort to catch up with the global technology frontier. In the electronics and high-technology industries, it rather testifies of the emergence of a new domain of specialization for Taiwan - which was largely enabled by the aforementioned innovation policies.

Keywords: R&D, Manufacturing Industries, Newly Industrialized Countries, Technology Imports, Stochastic Frontier Estimation, Total Factor Productivity

JEL Classification: L25, L60, O32, O33, C23

Suggested Citation

Chang, Chia-Lin and Robin, Stéphane, Knowledge Sourcing and Firm Performance in an Industrializing Economy: The Case of Taiwan (1992-2003) (May 7, 2009). Available at SSRN: https://ssrn.com/abstract=1400691 or http://dx.doi.org/10.2139/ssrn.1400691

Chia-Lin Chang (Contact Author)

National Chung Hsing University - Department of Applied Economics, Department of Finance ( email )

Taichung, Taiwan
China

Stéphane Robin

University of Strasbourg - Bureau of Economic Theory and Application (BETA) ( email )

France

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
533
Abstract Views
4,542
rank
61,800
PlumX Metrics