Technological capability and firm efficiency in Taiwan (China)
Bee Yan Aw, Geeta Batra
This article highlights the importance of firms' own investments in technological capability Recent research on the nature and extent of technical change in developing countries shows that the accumulation of technological capability should be treated not as a by-product of some other activity but as an activity in its own right. This research also points to the critical role of firms and indicates that firm-level efforts to obtain international knowledge may have higher payoffs when accompanied by complementary investments in the development of in-house technological capabilities. Using micro data from Taiwan (China), the authors estimate the technical efficiency of firms. They proxy firm-level efforts at modifying or adapting technology by expenditures on research and development and on-the-job training. They then use a stochastic production frontier model to estimate the correlation of a firm's efficiency both with investments in training and research and development and with international linkages (such as exporting, direct foreign investment, and foreign technology licenses). The evidence from manufacturing firms in Taiwan suggests that efficiency is positively correlated with the firm's investments in training and research and development and with its informal contacts with foreign purchasers through export sales.
World Bank Economic Review
https://doi.org/10.1093/wber/12.1.59
10.1093/wber/12.1.59
Dive into the research topics of 'Technological capability and firm efficiency in Taiwan (China)'. Together they form a unique fingerprint.
Technological Capability Business & Economics 82%
Taiwan Social Sciences 64%
China Social Sciences 46%
Firm Investment Business & Economics 42%
Training and Development Business & Economics 41%
International Linkages Business & Economics 28%
Aw, B. Y., & Batra, G. (1998). Technological capability and firm efficiency in Taiwan (China). World Bank Economic Review, 12(1), 59-79. https://doi.org/10.1093/wber/12.1.59
Aw, Bee Yan ; Batra, Geeta. / Technological capability and firm efficiency in Taiwan (China). In: World Bank Economic Review. 1998 ; Vol. 12, No. 1. pp. 59-79.
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title = "Technological capability and firm efficiency in Taiwan (China)",
abstract = "This article highlights the importance of firms' own investments in technological capability Recent research on the nature and extent of technical change in developing countries shows that the accumulation of technological capability should be treated not as a by-product of some other activity but as an activity in its own right. This research also points to the critical role of firms and indicates that firm-level efforts to obtain international knowledge may have higher payoffs when accompanied by complementary investments in the development of in-house technological capabilities. Using micro data from Taiwan (China), the authors estimate the technical efficiency of firms. They proxy firm-level efforts at modifying or adapting technology by expenditures on research and development and on-the-job training. They then use a stochastic production frontier model to estimate the correlation of a firm's efficiency both with investments in training and research and development and with international linkages (such as exporting, direct foreign investment, and foreign technology licenses). The evidence from manufacturing firms in Taiwan suggests that efficiency is positively correlated with the firm's investments in training and research and development and with its informal contacts with foreign purchasers through export sales.",
author = "Aw, {Bee Yan} and Geeta Batra",
note = "Funding Information: Bee Yan Aw is with the Department of Economics at Pennsylvania State University, and Geeta Batra is with the Private Sector Development Department at the World Bank. The authors gratefully acknowledge financial support for this project from the National Science Foundation (grant #SBR9308349) and the World Bank. This article has benefited substantially from the comments of two anonymous referees.",
doi = "10.1093/wber/12.1.59",
journal = "World Bank Economic Review",
Aw, BY & Batra, G 1998, 'Technological capability and firm efficiency in Taiwan (China)', World Bank Economic Review, vol. 12, no. 1, pp. 59-79. https://doi.org/10.1093/wber/12.1.59
Technological capability and firm efficiency in Taiwan (China). / Aw, Bee Yan; Batra, Geeta.
In: World Bank Economic Review, Vol. 12, No. 1, 01.1998, p. 59-79.
T1 - Technological capability and firm efficiency in Taiwan (China)
AU - Aw, Bee Yan
AU - Batra, Geeta
N1 - Funding Information: Bee Yan Aw is with the Department of Economics at Pennsylvania State University, and Geeta Batra is with the Private Sector Development Department at the World Bank. The authors gratefully acknowledge financial support for this project from the National Science Foundation (grant #SBR9308349) and the World Bank. This article has benefited substantially from the comments of two anonymous referees.
N2 - This article highlights the importance of firms' own investments in technological capability Recent research on the nature and extent of technical change in developing countries shows that the accumulation of technological capability should be treated not as a by-product of some other activity but as an activity in its own right. This research also points to the critical role of firms and indicates that firm-level efforts to obtain international knowledge may have higher payoffs when accompanied by complementary investments in the development of in-house technological capabilities. Using micro data from Taiwan (China), the authors estimate the technical efficiency of firms. They proxy firm-level efforts at modifying or adapting technology by expenditures on research and development and on-the-job training. They then use a stochastic production frontier model to estimate the correlation of a firm's efficiency both with investments in training and research and development and with international linkages (such as exporting, direct foreign investment, and foreign technology licenses). The evidence from manufacturing firms in Taiwan suggests that efficiency is positively correlated with the firm's investments in training and research and development and with its informal contacts with foreign purchasers through export sales.
AB - This article highlights the importance of firms' own investments in technological capability Recent research on the nature and extent of technical change in developing countries shows that the accumulation of technological capability should be treated not as a by-product of some other activity but as an activity in its own right. This research also points to the critical role of firms and indicates that firm-level efforts to obtain international knowledge may have higher payoffs when accompanied by complementary investments in the development of in-house technological capabilities. Using micro data from Taiwan (China), the authors estimate the technical efficiency of firms. They proxy firm-level efforts at modifying or adapting technology by expenditures on research and development and on-the-job training. They then use a stochastic production frontier model to estimate the correlation of a firm's efficiency both with investments in training and research and development and with international linkages (such as exporting, direct foreign investment, and foreign technology licenses). The evidence from manufacturing firms in Taiwan suggests that efficiency is positively correlated with the firm's investments in training and research and development and with its informal contacts with foreign purchasers through export sales.
U2 - 10.1093/wber/12.1.59
DO - 10.1093/wber/12.1.59
JO - World Bank Economic Review
JF - World Bank Economic Review
Aw BY, Batra G. Technological capability and firm efficiency in Taiwan (China). World Bank Economic Review. 1998 Jan;12(1):59-79. doi: 10.1093/wber/12.1.59