2019
DOI: 10.3390/su11072000
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Innovation, Mark-Up and Firm Growth: Evidence from China’s New Generation IT Industry

Abstract: In this paper, we provide empirical evidence for understanding the growth behavior of China’s new generation of information technology (IT) industrial firms and the impact of innovation and market power on them. Based on the data of China’s new generation IT industrial firms covering the period 2000–2007, we use ordinary least square (OLS) and two-stage least squares (IV-2SLS) methods to study the effects of innovation and markup on the growth of China’s new generation IT industrial firms in the framework of G… Show more

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Cited by 5 publications
(5 citation statements)
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“…For example, some companies explore ride‐sharing and car‐sharing services, offering new revenue streams while simultaneously curbing the proliferation of vehicles on the road, thereby reducing traffic congestion and emissions (Choi & Lee, 2021). According to Li et al's (2020) study, innovation‐driven business model changes can facilitate sustained growth for firms. In summary, innovation emerges as a pivotal determinant of success and sustainability within the automotive sector.…”
Section: Literature Review and Hypothesis Developmentmentioning
confidence: 99%
“…For example, some companies explore ride‐sharing and car‐sharing services, offering new revenue streams while simultaneously curbing the proliferation of vehicles on the road, thereby reducing traffic congestion and emissions (Choi & Lee, 2021). According to Li et al's (2020) study, innovation‐driven business model changes can facilitate sustained growth for firms. In summary, innovation emerges as a pivotal determinant of success and sustainability within the automotive sector.…”
Section: Literature Review and Hypothesis Developmentmentioning
confidence: 99%
“…To address the endogeneity concerns, we applied the IV method to estimate equation ( 5) using the two-stage least-square (2SLS) estimator-the most common strategy that researchers use to address the endogeneity problem (Bascle 2008;Wooldridge 2016). We adopted the strategy used by Li, Jin, and Ding (2019) to identify the instrument variables by averaging the value of the innovation variable (technology licensed from a foreignowned company) and the value of the technology variable for each region where sample firms are located. In our dataset, the surveyed firms were randomly selected from five geographical areas in which average values for innovation and foreign technology adoption varied considerably.…”
Section: Addressing Endogeneity Problemsmentioning
confidence: 99%
“…In our dataset, the surveyed firms were randomly selected from five geographical areas in which average values for innovation and foreign technology adoption varied considerably. The selection of instruments was based on the intuition that the regional innovative capacity and ecosystem are highly connected with firm innovation but weakly correlated with firm productivity (Li, Jin, and Ding 2019).…”
Section: Addressing Endogeneity Problemsmentioning
confidence: 99%
“…By redesigning and optimizing business processes and introducing new business models and sources of revenue, enterprises can gain a competitive advantage in a highly competitive market. For example, Telecom operators can create new business models, provide more diversified services, and increase revenue sources by providing value-added services, customized packages, and cross-border cooperation, thus improving competitiveness [5]. Second, innovation management can help companies improve operational efficiency and reduce costs.…”
Section: Enterprise Competitivenessmentioning
confidence: 99%
“…By continuously innovating and exploring new market areas, companies can expand their market share and gain more market share. For example, telecommunication operators can increase their market share by launching new packages and services and entering emerging markets, such as the Internet of Things, cloud computing, and smart homes [5].…”
Section: Market Sharementioning
confidence: 99%