The effect of R&D novelty and openness decision on firms' catch-up performance: Empirical evidence from China

Jin Chen, Ning Luato, Wim Vanhaverbeke, Wang Fangrui, Yuandi Wang

Research output: Indexed journal article Articlepeer-review

42 Citations (Scopus)

Abstract

This paper explores the strategic dimensions of R&D decisions toward novelty and openness in explaining the performance of latecomer firms in a developing economy. A structural equation model of R&D decision-making is formulated using survey data from 279 Chinese firms. The dimension of R&D novelty is defined as the degree of technological newness found in firms' R&D projects, while R&D openness describes the degree to which technologies are acquired from external sources. Our results indicate that firms' R&D decisions regarding novelty and openness are associated with demand opportunities, market competition, technological capability, and external networks. Greater R&D novelty contributes positively to innovative output but does not affect sales growth. Greater R&D openness contributes positively to sales growth but negatively to innovative output.
Original languageEnglish
Pages (from-to)21-30
JournalTechnovation: The International Journal of Technological Innovation, Entrepreneurship and Technology Management
Volume34
DOIs
Publication statusPublished - 1 Jan 2014
Externally publishedYes

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