R&D, Technology Transfer and Innovation Performance: Evidence from Chinese Industries

Based on the data of large and medium-sized industrial enterprises put forward by National Bureau of Statistics of China, over the period 1991-2007, this paper empirically investigates the dynamic econometrical relationship among R&D, technology transfer, including imports of technology and purchase of domestic technology and innovation performance which is denoted by new product sales, using ADF unit root test, co-integration analysis and granger causality test. The empirical research results indicate that innovation performance is granger causing R&D and technology transfer, while R&D and technology transfer are not granger causing innovation performance. Neither the feedback effect between R&D and innovation performance nor that between technology transfer and innovation performance is occurring.