In:
The Scandinavian Journal of Economics, Wiley, Vol. 111, No. 4 ( 2009-12), p. 835-861
Abstract:
We propose a new channel of FDI spillovers on domestic firms, which operates through imitation of original products. Domestic heterogeneous firms may not introduce any new products, introduce a new product line (innovate), or develop a variety that is a close substitute to an existing product line (imitate). The presence of foreign firms generates incentives for imitation because they introduce original products that are vertically differentiated from domestic products. Using firm‐level panel data for China, we find that increased FDI presence in a given industry leads to more imitation, but not necessarily more innovation, by domestic firms.
Type of Medium:
Online Resource
ISSN:
0347-0520
,
1467-9442
DOI:
10.1111/sjoe.2009.111.issue-4
DOI:
10.1111/j.1467-9442.2009.01589.x
Language:
English
Publisher:
Wiley
Publication Date:
2009
detail.hit.zdb_id:
8170-X
detail.hit.zdb_id:
1473804-1
Permalink