Scientific Personnel Allocation and Firm Innovation: Evidence from China's Expansion of Higher Education

51 Pages Posted: 23 Oct 2014

See all articles by Zhao Rong

Zhao Rong

Wenlan School of Business, Zhongnan University of Economics and Law; Southwestern University of Finance and Economics (SWUFE) - Research Institute of Economics & Management

Binzhen Wu

Tsinghua University - School of Economics & Management

Date Written: October 23, 2014

Abstract

Scientific personnel are important to firm innovation; however, their short-run supply is inelastic. During China’s college enrollment expansion beginning in 1999, colleges had hired a larger proportion of scientific personnel than before, thereby making fewer available to industries. We empirically confirm that the increase in the number of college teachers resulted in lower innovation propensities among firms in China. College expansion also imposed a negative effect on total patenting. Moreover, in areas where college expansion was more intensive, highly educated individuals were less likely to choose industrial jobs, and the wage gap between professional jobs and non-professional jobs was higher.

Keywords: College expansion; scientific personnel; Firm innovation; Patenting; China

JEL Classification: O30, J20

Suggested Citation

Rong, Zhao and Wu, Binzhen, Scientific Personnel Allocation and Firm Innovation: Evidence from China's Expansion of Higher Education (October 23, 2014). Available at SSRN: https://ssrn.com/abstract=2513724 or http://dx.doi.org/10.2139/ssrn.2513724

Zhao Rong

Wenlan School of Business, Zhongnan University of Economics and Law ( email )

Nanhu avenue hi tech development zone wuhan
Wuhan, Hubei 430073
China

Southwestern University of Finance and Economics (SWUFE) - Research Institute of Economics & Management ( email )

55 Guanghuacun Street
Chengdu, Sichuan 610074
China

Binzhen Wu (Contact Author)

Tsinghua University - School of Economics & Management ( email )

School of Economics and Management
Tsinghua University
Beijing, Beijing 100084
China

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