Abstract

This article contributes to the understanding of innovative behaviour in China’s large and medium-sized firms and hence the role of Chinese firms in innovation. The empirical analyses are based on firm-level survey data. Innovation has important implications not only for the transformation of the Chinese economy but also for the rest of the world as Chinese firms become increasingly active internationally. Specifically, this article explores the factors underlying the propensity, intensity and persistence of research and development (R&D) spending in Chinese firms.

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