This paper investigates relations of globalization, innovation input, innovation output and production performance in China for four major manufacturing sectors: Textile, Wearing Apparel, Transport Equipment and Electronic Equipment, by using a large sample of firm level micro data and a structural model (CDM) in estimation. A wave from 2005 to 2006 is estimated and results of all the sectors proves positive effects from innovation input to output, then to firm performance. Market share, export, subsidy, firm size, capital category and other characters of firms are involved in the estimation, which explains significant difference in engaging in innovation and production. In all the sectors, market share improves R&D input, continuous R&D input and export improve new products output. Subsidy sustains R&D input, but not in innovation output. Comparing with private firms, overseas capital based firms tend to input less and output less in innovation, but they do have higher productivity, which might face challenge after the common tax reduction policy was totally abrogated in 2010.
Collected by the National Bureau of Statistics, the firm level data includes firm's inputs, outputs and financial status, and all of them are hard data, which is quite different with the survey data like CIS data studied by EU researchers. It gives more information and difficulties in modeling. A cross-table descriptive specification and discussion of estimation methods are also included in the paper.
Keywords: Export; R&D; New Products; Productivity
Biography: Zhen Feng, Male, born in China in 1979
Education: Bachelor (2001) and Doctor (2008), School of Statistics, Renmin University of China
Employment: Program Coordinator (2001-2003), Academic Research Office, Renmin University of China
Visiting Researcher (2007-2008), UNU-MERIT (Netherlands)
Assistant Professor (2008), School of Statistics, Central University of Finance and Economics (China)
Post-dorctorial Researcher (from July 2010), Bank of China, and Chinese Academy of Social Science
Research insterests: Applied Statistics, Innovation and Competitiveness Study