Technology Capacity, Product Position and Firm’s Competitiveness: An Empirical Analysis

23 Pages Posted: 4 Apr 2010

See all articles by Yanyan Gao

Yanyan Gao

Southeast University - School of Economics and Management

Zhibiao Liu

Nanjing University - School of Economics

Shunfeng Song

University of Nevada, Reno

Jianghuai Zheng

Nanjing University - Industrial Economic Department - School of Economics

Date Written: March 2010

Abstract

Using firm-level data from a 2009 survey conducted in Suzhou City, Jiangsu Province, China, this paper examines impacts of technology capacity and value-chain position on firm’s product competitiveness. Both technology capacity and product competitiveness are self-assessed relative to other firms and products in the same industry. The position of value-chain is measured if a firm is an original brand manufacturer or not. Our empirical results show that competitiveness rises with firm’s technology capacity and its position in the global value chain. This finding is consistent with the theoretical prediction. The paper also investigates determinants of technology capacity and value-chain position, including firm’s size, R&D spending, location dummies, education level of technical and management personnel, wages of technical and management personnel, and enterprise ownership. Bootstrapping, Probit, and linear probability regression models are employed.

Keywords: Technology Capacity, Original Brand Manufacturer, Competitiveness, Global Value Chain, Bootstrapping

JEL Classification: D2, L6

Suggested Citation

Gao, Yanyan and Liu, Zhibiao and Song, Shunfeng and Zheng, Jianghuai, Technology Capacity, Product Position and Firm’s Competitiveness: An Empirical Analysis (March 2010). Available at SSRN: https://ssrn.com/abstract=1393050 or http://dx.doi.org/10.2139/ssrn.1393050

Yanyan Gao (Contact Author)

Southeast University - School of Economics and Management ( email )

Jingguan Building, Dongnandaxue Road 2, Jiangning
Nanjing, Jiangsu 211189
China

Zhibiao Liu

Nanjing University - School of Economics ( email )

Nanjing, Jiangsu 210093
China

Shunfeng Song

University of Nevada, Reno ( email )

1664 N. Virginia Street
Reno, NV 89557
United States

Jianghuai Zheng

Nanjing University - Industrial Economic Department - School of Economics ( email )

Hankou Road 22
Nanjing, Jiangsu 210093
China
86-25-83595262 (Phone)
0086-25-83595262 (Fax)

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