The authors like to acknowledge the funding of the Alexander von Humboldt foundation (3.1 TCVERL-DEU/1131699) and the German Research Foundation (Scha198/42-1). We also like to thank the reviewers for helpful comments.
The Innovativeness and Heterogeneity of Foreign-Invested High-Tech Companies in Shanghai
Article first published online: 23 AUG 2013
© 2013 Wiley Periodicals, Inc
Growth and Change
Volume 44, Issue 3, pages 522–549, September 2013
How to Cite
Liefner, I., Wei, Y. D. and Zeng, G. (2013), The Innovativeness and Heterogeneity of Foreign-Invested High-Tech Companies in Shanghai. Growth and Change, 44: 522–549. doi: 10.1111/grow.12018
- Issue published online: 23 AUG 2013
- Article first published online: 23 AUG 2013
- Manuscript Accepted: MAR 2012
- Manuscript Revised: JAN 2011
- Manuscript Received: DEC 2010
- Alexander von Humboldt foundation. Grant Number: 3.1 TCVERL-DEU/1131699
- German Research Foundation. Grant Number: Scha198/42-1
China has taken a foreign direct investment-based approach toward increasing its capital and knowledge base, and developing into an innovative economy. However, little quantitative evidence exists about the factors that drive innovations of foreign-invested enterprises (FIEs) there. This paper uses survey data from high-technology firms in Shanghai to discuss factors affecting their innovativeness. It takes the concepts of absorptive capacity, export orientation, and innovation-related cooperation as a starting point. It highlights how the interplay of strategies and resources affects innovativeness and heterogeneity of FIEs. The most innovative FIEs are endowed with a strong human capital base and R&D activities, which at the same time target export markets and whose cooperative partners involve firms other than their parent company. The results underline the necessity to differentiate between the different types of FIEs when examining their innovativeness.