International knowledge interactions and catch-up. Evidence from European patent data for Chinese latecomer firms

Abstract

International knowledge interactions constitute channels of knowledge transfer that finally promote technological catch-up. Accounting for the differences in knowledge dimensions and knowledge interactions, catching-up firms are provided with different types of learning opportunities. In the context of catch-up of emerging economy firms, the empirical evidence considering these differences is rather scarce. Using a cross-section of European patent data, we investigate the effects of different types of international knowledge interactions on the quality of knowledge captured by Chinese firms’ patent applications. We differentiate between lower vs. higher levels of learning and explore the technological learning process of Chinese firms over a period of 15 years. We find that international knowledge interactions are associated positively with knowledge quality. In the earlier phases of the catch-up process, knowledge interactions providing lower levels of learning are associated with a higher quality of the knowledge generated. Whereas knowledge interactions with the opportunity for higher levels of learning are correlated with a higher quality of the generated knowledge in later phases of the catch-up process.