Abstract
Based on an extended three-step CDM model, this paper addresses the impacts of research and development (R&D) and information and communication technology (ICT) on firm productivity for the World Bank innovation survey data of China. The study includes ICT investment and R&D as the two main inputs into innovation and productivity. We find that R&D and ICT investments positively affect product innovation and process innovation, with R&D being more important for innovation and productivity, and ICT being more important for innovation and no direct effect on productivity. We conclude that R&D and ICT investments increase the probability of product innovation and process innovation, which increase firm’s productivity, suggesting that R&D and ICT investments indirectly affect productivity through innovation.
Zhu, F.; Li, Q.; Yang, S.; Baležentis T. 2021. How ICT and R&D affect productivity? Firm level evidence for China. Economic Research-Ekonomska Istraživanja: Routledge-Taylor & Francis. ISSN 1331-677X. eISSN 1848-9664. p. 1–20. DOI: 10.1080/1331677X.2021.1875861. [Social Sciences Citation Index (Web of Science); Scopus].