Abstract
The purpose of this paper is to assess whether research and development (R&D) investment, degree of internationalization (DOI), and ownership structure affect the patent application of enterprises in an emerging market. Using a firm-level data from 242 China's information and communication technology (ICT) and automobile manufacturing listed companies on Shanghai and Shenzhen A- stock exchanges market from 2011 to 2015, our empirical results demonstrate that: (1) the degree of internationalization of enterprises has a positive facilitating influence on the correlation among corporate R&D investment and a patent application; (2) the state-owned ownership negatively moderates the R&D investment-patent application link, and (3) international expansion can adequately compensate for the efficiency disadvantages of R&D investment and patent application engender by state ownership. Besides, the study discovered and explained an exciting phenomenon and bring forth important enlightenment to enterprises in the emerging economies to improve resource utilization efficiency and achieve technical ability to catch up.
Highlights
Technological innovation is regarded as a critical driving element to enhance enterprises' sustainable competitive advantage, productivity, and growth [1]
Does international expansion have a positive influence on the negative effects of stateownership on research and development (R&D) investment and patent application? Using firm-level data obtained from China's information and communication technology (ICT) and automobile manufacturing companies listed on Shanghai and Shenzhen Astock exchanges market from 2011 to 2015
We argue that the international expansion of enterprises in emerging economies is conducive to avert the disadvantages of ownership and accelerate the technological catch-up process of stateowned enterprises, thereby increasing the unit output of R&D investment
Summary
Technological innovation is regarded as a critical driving element to enhance enterprises' sustainable competitive advantage, productivity, and growth [1]. For Chinese enterprises to address and erase this perception towards achieving post-development technology, it is prudent for the enterprises (i.e., state or private) to improve the research and development (R&D) resource utilization efficiency In recent years, this phenomenon has led scholars to focus more on how the internal and external factors such as R&D resource redundancy, foreign investment behavior, international expansion, absorptive capacity, ownership structure, institutional resources, managerial corruption, and governmental intervention of enterprises in emerging economies affect R&D investment and innovation output towards sustainable development. The current study intends to explore the combined influences of ownership and internationalization on the R&D investment-patent application relationship, in the following conditions: (i) the global competitive environment, and (ii) the change under different internationalization levels. Does international expansion have a positive influence on the negative effects of stateownership on R&D investment and patent application? Using firm-level data obtained from China's ICT and automobile manufacturing companies listed on Shanghai and Shenzhen Astock exchanges market from 2011 to 2015
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