Innovation and Total Factor Productivity of Enterprises——Evidence from Manufacturing Enterprises in China
YE Jing-yi;LIN Jia;Peking University,College of Economics;
In this paper,we combine Chinese industrial survey database( 1998—2007) with patent data from the State Intellectual Property Office to investigate the effect of innovation on total factor productivity for Chinese above-scale manufacture firms. Empirical results suggest firms with positive RD to have 4. 9% higher TFP compared to those without them; while firms with at least one patent have 3.1% higher TFP compared to those without them. In the above two regressions,controlling for"learning by doing"will reduce the associated effects to 3.5% and 2.5%. Further investigation reveals the sensitivity to changes in innovation is non-uniform across ownership: private firms exhibiting the largest effect,followed by foreign-funded enterprises and stateowned enterprises.