An Empirical Study on the Effects of Enterprise Ownership on R&D Efficiency

  • Jie Han, Ziying Liu

Abstract

The aim of this paper has been to investigate the effects of Enterprise Ownership on R&D Efficiency. With China still being in transition from its central planning legacy, R&D efficiency could be potential channels through which the ownership effect on productivity is transmitted. Using R&D production frontier function, this paper tested the R&D efficiency for a sample of large and medium size Chinese industrial enterprises from different ownership sectors during 2004-2017. Ownership factors are important determinants of R&D efficiency. The presence of state ownership is negatively related to R&D performance. Foreign firms are technical leader in Chinese industries and have advantage in R&D efficiency. These points out the fact that while the firms possessing more government support - the state-owned enterprises, they are not the ones performing better technically.  This paper contributes to the research of R&D efficiency of firms under various forms of ownership in transition economy. Because conditions in China were similar in many ways to other transition economies, these results provide important information about the process of economic transformation more generally.

Published
2020-11-30
How to Cite
Jie Han, Ziying Liu. (2020). An Empirical Study on the Effects of Enterprise Ownership on R&D Efficiency. Design Engineering, 943 - 952. https://doi.org/10.17762/de.vi.958
Section
Articles