Innovation and Foreign Ownership

Guadalupe, María; Kuzmina, Olga; Thomas, Catherine

doi:10.3386/w16573

Cited by 129 publications

(257 citation statements)

References 35 publications

Supporting

Mentioning

232

Contrasting

Order By: Relevance

“…New products as a share of total output value vary significantly between these groups, with the exporting subgroups having higher averages. Foreign-owned firms do not appear to undertake product innovation significantly above the mean according to the table, although they are larger and more likely to export than the average firm, which fits the pattern documented elsewhere in the literature (Commander and Svejnar 2011;Gorodnichenko, Svejnar, and Terrell 2010;Guadalupe, Kuzmina, and Thomas 2012).…”

Section: A Datasupporting

confidence: 83%

“…Keller (2004) reviews the debate on learning-by-exporting for productivity. A related question, which this paper cannot address for lack of data, is learningby-importing (Vogel and Wagner 2010). investment promotes product innovation, also without providing a comparison to exporting (Girma, Gong, and Görg 2008;Guadalupe, Kuzmina, and Thomas 2012). Note that I use the term "foreign ownership" to describe FDI in most of the article; the term seems more relevant to firm-level descriptions.…”

Section: Exporting and Fdi's Effects On Product Innovationmentioning

confidence: 98%

“…New products are 12.9% of the output of majority foreign-owned firms, compared to 19.0% for Chinese owned similar firms that were chosen to control for selection into FDI status (i.e., foreign ownership). 2 This raises an interesting contrast for papers that find statistically significant effects for FDI on product innovation in other contexts like Eastern or Western Europe (Commander and Svejnar 2011;Guadalupe, Kuzmina, and Thomas 2012). The differences suggest that context may determine the level of product innovation that foreign owners undertake.…”

Section: Introductionmentioning

confidence: 99%

“…The literature on product innovation motivated this approach. Gorodnichenko, Svejnar, and Terrell (2010) and Damijan, Kostevc, and Polanec (2010) indicate that exporters tend to do more product innovation, while others attribute product innovation to foreign-ownership (Guadalupe, Kuzmina, and Thomas 2012). There are good reasons for both arguments, and the reverse could be true.…”

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

The Impact of Exporting and Foreign Direct Investment on Product Innovation: Evidence From Chinese Manufacturers

Olabisi

2017

Contemporary Economic Policy

View full text Add to dashboard Cite

To understand the drivers of product innovation at the firm level, I compare the effects of foreign direct investment (FDI) and exporting on product innovation using a rich firm‐level database of manufacturing and industrial enterprises. The article focuses on product innovation, as it is vital to economic development. Estimates from linear regressions and propensity score matching tests show that learning‐by‐exporting is a stronger predictor of product innovation. Firms that receive foreign investment also tend to engage in more product innovation, but not at the same level as the firms that export. Additional tests confirm that as they start and stop exporting, firms change their patterns of investment in the drivers of product innovation—fixed capital and research. (JEL D22, F14, F23, L25, O31)

show abstract

Section: A Datasupporting

confidence: 83%

Section: Exporting and Fdi's Effects On Product Innovationmentioning

confidence: 98%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

The Impact of Exporting and Foreign Direct Investment on Product Innovation: Evidence From Chinese Manufacturers

Olabisi

2017

Contemporary Economic Policy

View full text Add to dashboard Cite

show abstract

“…22 This approach enables us to include the 19 Propensity score matching (without regression adjustment) has been quite popular in the literature on foreign ownership; see, for example, Arnold and Javorcik (2009) and Girma and Görg (2007). Guadalupe et al (2012) and Girma et al (2015) provide examples of a propensity score reweighting approach combined with regression adjustment. 20 The exact variables used are as follows: k30 contains the value for the answer to the "access to finance" obstacle question.…”

Section: Empirical Methodology and Datamentioning

confidence: 99%

Vertical integration and supplier finance

Görg

Kersting

2017

Canadian J of Economics

View full text Add to dashboard Cite

This paper studies access to finance by suppliers that are linked to a multinational enterprise. The theoretical framework consists of a property rights model featuring suppliers that are either vertically integrated or sell to the multinational at arm's length, which in turn affects the availability of different sources of credit. Integrated suppliers are predicted to cover a relatively larger share of their costs using internal sources, consisting of initial wealth plus funds from the multinational parent. In addition, due to the diminished dependence on external funds (local bank credit), integrated suppliers' funding shares are less responsive to changes in their home country's level of financial development. We test the model's predictions using firm survey data from over 50 developing and emerging countries and find broad support.

show abstract

CEO foreign experience and corporate sustainable development: Evidence from China

2022

View full text Add to dashboard Cite

This study examines the impact of CEO foreign experience on corporate sustainable development from the angle of firm green innovation. Using manually collected data of CEOs' foreign experience, we find that CEO foreign experience is positively associated with firm green innovation in China. The positive relationship between CEO foreign experience and green innovation (including green invention patents and green utility model patents) is more significant when the firm is state owned, when the firm has better corporate governance, and when the firm is subject to a better institutional environment. Further analyses indicate that both foreign work and foreign educational experiences matter; relative to experiences gained in underdeveloped countries, those related to developed economies tend to be more influential in facilitating green innovation. Finally, the documented association is robust to a series of robustness checks, including propensity score matching, instrumental variable approach, Heckman two‐stage model, and the inclusion of firm fixed effects. Overall, this paper contributes to the upper echelons perspective, and it also offers clear practical implications through showing that hiring returnee CEOs can enhance firms' sustainable development, which could be of interest to policy makers in other emerging markets.

show abstract

Innovation and Foreign Ownership

Cited by 129 publications

References 35 publications

The Impact of Exporting and Foreign Direct Investment on Product Innovation: Evidence From Chinese Manufacturers

The Impact of Exporting and Foreign Direct Investment on Product Innovation: Evidence From Chinese Manufacturers

Vertical integration and supplier finance

CEO foreign experience and corporate sustainable development: Evidence from China

Contact Info

Product

Resources

About