Skip to main content
SpringerLink
Log in

How fast do Chinese firms learn and catch up? Evidence from patent citations

  • Published:
Scientometrics Aims and scope Submit manuscript

Abstract

There is a wealth of research on technological learning in developing countries, but few scholars have clearly addressed the issue of learning time in an empirical way. This paper aims to fill this void by presenting an empirical investigation of the time needed by Chinese firms to learn from the technologies that they have in-licensed. Furthermore, we analyzed in detail the antecedents leading to an acceleration or deceleration of the learning process among Chinese licensees. The results of an event history analysis indicate that recipient firms take on average 5.8 years to learn from their in-licensed technologies. The absorptive capacity and firm age of the licensees, the technology licensing scale, the age of the licensed technology, and the desorptive capability of the licensor firm all play a role in shortening the learning time.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1

Similar content being viewed by others

Notes

  1. The form of licensed technologies might vary between invention patents or trade secrets or other similar intellectual property. In our case, all license agreements are patent transactions.

  2. However, it is worth noting there is likely a limitation for this. The Chinese patent system started to accept patent applications in 1985, but the compulsory requirement to add references in the patent application documentation was only initiated in 1997. However, in 2004, 2005, and 2006, this requirement was suspended again. For these 3 years, we mainly depend on the information from the technological background described in the patent application document to identify its technological origin. In addition, we take into account the citations that the examiner included in the first page of the patent documents. In sum, we identify the learning based on licensed technology when licensed-in patent numbers/names appear either in the technological background introduction or in the first documentation of the patent grant. For the other years, we only use information about citations included either by the applicant or by the examiner. Therefore, this dual approach to identifying the origin of a firm’s new knowledge creation may lead to a small bias in the result of our study.

  3. According to the National Bureau of Statistics, the Chinese high-tech sector is divided into 17 sub-sectors (including 5 main categories, namely, medical and pharmaceutical products, aircraft and spacecraft, electronic and telecommunications, computer and office equipment, and medical equipment and meters).

  4. In this study, applied patents mean patents already granted or those still under examination. Due to the limitation of the available data only from 2000 onwards and because patents that are granted normally require several years, this approach is appropriate to produce sufficient patents for tracing their knowledge base they build on.

References

  • Ahuja, G., & Katila, R. (2001). Technological acquisitions and the innovation performance of acquiring firms: a longitudinal study. Strategic Management Journal, 22(3), 197–220.

    Article  Google Scholar 

  • Almeida, P. (1996). Knowledge sourcing by foreign multinationals: patent citation analysis in the US semiconductor industry. Strategic Management Journal, 17, 155–165.

    Google Scholar 

  • Amsden, A. (1989). Asia’s next giant: South Korea and late industrialisation. New York: Oxford University Press.

    Google Scholar 

  • Arora, A. (1996). Contracting for tacit knowledge: the provision of technical services in technology licensing contracts. Journal of Development Economics, 50, 233–256.

    Article  Google Scholar 

  • Arora, A., Fosfuri, A., & Gambardella, A. (2001). Markets for technology: the economics of innovation and corporate strategy. Cambridge: The MIT.

    Google Scholar 

  • Arora, A., & Gambardella, A. (2010). Ideas for rent: an overview of markets for technology. Industrial & Corporate Change, 19(3), 775–803.

    Article  Google Scholar 

  • Arrow, K. J. (1962). Studies in applied probability and management science. Stanford: Stanford University Press.

    MATH  Google Scholar 

  • Bell, M. (2006). Time and technological learning in industrialising countries: how long does it take? How fast is it moving (if at all)? International Journal of Technology Management, 36(1/3), 25–39.

    Article  Google Scholar 

  • Bell, M., & Pavitt, K. (1993). Technological accumulation and industrial growth: contrasts between developed and developing countries. Industrial & Corporate Change, 2(2), 157–210.

    Article  Google Scholar 

  • Belsley, D. A. (1980). On the efficient computation of the nonlinear full-information maximum-likelihood estimator. Journal of Econometrics, 14(2), 203–225.

    Article  MATH  MathSciNet  Google Scholar 

  • Blodgett, L. L. (1992). Factors in the instability of internal joint ventures: an event history analysis. Strategic Management Journal, 13(6), 475–481.

    Article  Google Scholar 

  • Chatterji, D., & Manuel, T. A. (1993). Benefiting from external sources of technology. Research Technology Management, 36(6), 21–27.

    Google Scholar 

  • Chawla, H. S. (2007). Managing intellectual property rights for better transfer and commercialization of agricultural technologies. Journal of Intellectual Property Rights, 12(5), 330–340.

    Google Scholar 

  • Chesbrough, H., & Melissa, M. A. (2007). Open innovation and strategy. California Management Review, 50(1), 57–76.

    Article  Google Scholar 

  • Cloodt, M., Hagedoorn, J., & Van Kranenburg, H. (2006). Mergers and acquisitions: their effect on the innovative performance of companies in high-tech industries. Research Policy, 35(5), 642–654.

    Article  Google Scholar 

  • Cohen, W. M., & Levinthal, D. A. (1989). Innovation and learning: the two faces of R&D. Economic Journal, Royal Economic Society, 99(397), 569–596.

    Google Scholar 

  • Cohen, W. M., & Levinthal, D. A. (1990). Absorptive capacity: a new perspective on learning and innovation. Administrative Science Quarterly, 35, 128–152.

    Article  Google Scholar 

  • Cummings, J. L., & Teng, B.-S. (2003). Transferring R&D knowledge: the key factors affecting knowledge transfer success. Journal of Engineering and Technology Management, 20(1/2), 39–68.

    Article  Google Scholar 

  • Dahlman, C. J., Ross-Larson, B., & Westphal, L. E. (1987). Managing technological development: lessons from the newly industrializing countries. World Development, 15(6), 759–775.

    Article  Google Scholar 

  • Dodgson, M. (1993). Organizational learning: a review of some literatures. Organization Studies, 14(3), 375–394.

    Article  Google Scholar 

  • Ernst, D., & Park, W. H. (1988). The adoption and diffusion of imported technology: the case of Korea. London: Croom Helm.

    Google Scholar 

  • Fleming, L. (2001). Recombinant uncertainty in technological search. Management Science, 47(1), 117–132.

    Article  Google Scholar 

  • Gerschenkron, A. (1962). Economic backwardness in historical perspective. Cambridge: The Belknap Press of Harvard Univeristy Press.

    Google Scholar 

  • Grindley, P. C., & Teece, D. (1997). Managing intellectual capital: licensing and cross-licensing in semiconductors and electronics. California Management Review, 39(2), 8–41.

    Article  Google Scholar 

  • Hagedoorn, J. (1993). Understanding the rationale of strategic technology partnering: inter-organizational modes of cooperation and sectoral differences. Strategic Management Journal, 14, 371–385.

    Article  Google Scholar 

  • Hagedoorn, J. (2002). Inter-firm R&D partnerships: an overview of major trends and patterns since 1960. Research Policy, 31(4), 477–492.

    Article  Google Scholar 

  • Hall, B. H., Jaffe, A. B., & Trajtenberg, M. (1999). Market value and patent citations. Paris: NBER working paper.

    Google Scholar 

  • Hausman, J. A., & Griliches, Z. (1984). Econometric models for count data with an application to the patents-R&D relationship. Economic and Political Weekly, 27, 909–938.

    Google Scholar 

  • Hobday, M. (1995). East Asian latecomer firms: learning the technology of electronics. World Development, 23(7), 1171–1193.

    Article  Google Scholar 

  • Hofstede, G. (2001). Culture’s consequences: comparing values, behaviors, institutions, and organizations across nations (2nd ed.). London: Sage Publications Inc.

    Google Scholar 

  • Horwitz, E. (2007). Patent and technology licensing. Computer & Internet Lawyer, 24(10), 28–40.

    Google Scholar 

  • Jaffe, A. (1986). Technological opportunity and spillovers of R&D: evidence from firms’ patents, profits, and market value. American Economic Review, 76(5), 984–1002.

    Google Scholar 

  • Jaffe, A. B., & Trajtenberg, M. (1993). Geographic localization of knowledge spillovers as evidenced by patent citations. Quarterly Journal of Economics, 108(3), 577–598.

    Article  Google Scholar 

  • Jang, S.-L., Lo, S., & Wen, H.-C. (2009). How do latecomers catch up with forerunners? Analysis of patents and patent citations in the field of flat panel display technologies. Scientometrics, 79(3), 563–591.

    Article  Google Scholar 

  • Johnson, D. K. N. (2002). ‘Learning-by-licensing’: R&D and technology licensing in Brazilian invention. Economics of Innovation & New Technology, 11(3), 163–177.

    Article  Google Scholar 

  • Kazanjian, R. K., Drazin, R., & Glynn, M. A. (2000). Creativity and technological learning: the roles of organization architecture and crisis in large-scale projects. Journal of Engineering and Technology Management, 17(3/4), 273–298.

    Article  Google Scholar 

  • Kessler, E. H., & Bierly, P. E. (2000). Internal vs. external learning in new product development: effects on speed, costs and competitive advantage. R&D Management, 30(3), 213–224.

    Article  Google Scholar 

  • Kim, L. (1980). Stages of development of industrial technology in a developing country: a model. Research Policy, 9(3), 254–277.

    Article  Google Scholar 

  • Kim, L. (1997). Imitation to innovation: the dynamics of korea’s technological learning. Boston: Harvard Business School.

    Google Scholar 

  • Kim, L., & Dahlman, C. J. (1992). Technology policy for industrialization: an integrative framework and Korea’s experience. Research Policy, 21(5), 437–452.

    Article  Google Scholar 

  • Kim, L., & Nelson, R. R. (2000). Technology, learning and innovation: experiences of newly industrializing economies. Cambridge: Cambridge University Press.

    Google Scholar 

  • Kogut, B., & Zander, U. (1992). Knowledge of the firm, combinative capabilities, and the replication of technology. Organization Science, 3(3), 383–397.

    Article  Google Scholar 

  • Kravdal, O. (2001). The impact of marital status on cancer survival. Social Science and Medicine, 52(3), 357–368.

    Article  Google Scholar 

  • Kumar, N. (1987). Technology imports and local research and development in Indian manufacturing. The Developing Economies, 25(3), 220–233.

    Article  Google Scholar 

  • Lall, S. (2000). Technological change and industrialization in the Asian newly industrializing economies: achievements and challenges. In L. Kim & R. R. Nelson (Eds.), Technology, learning, & innovation: experiences of newly industrializing economies. Cambridge: Cambridge University Press.

    Google Scholar 

  • Lecocq, C., & Bart, V. L. (2009). The impact of collaboration on the technological performance of regions: time invariant or driven by life cycle dynamics? Scientometrics, 80(3), 845–865.

    Article  Google Scholar 

  • Lee, K. (2005). Making a technological catch-up: barriers and opportunities. Asian Journal of Technology Innovation, 13, 97–131.

    Article  Google Scholar 

  • Lee, S., & Lee, S. (2003). Testing heterogeneity for frailty distribution in shared frailty model. Communications in Statistics, 32(11), 2245–2253.

    MATH  MathSciNet  Google Scholar 

  • Lee, K., & Lim, C. (2001). Technological regimes, catching-up and leapfrogging: findings from the Korean industries. Research Policy, 30(3), 459–483.

    Article  MathSciNet  Google Scholar 

  • Levinthal, D. A., & March, J. G. (1993). The myopia of learning. Strategic Management Journal, 14(S2), 95–112.

    Article  Google Scholar 

  • Lichtenthaler, U., & Muethel, M. (2012). The role of deliberate and experiential learning in developing capabilities: insights from technology licensing. Journal of Engineering and Technology Management, 29(2), 187–209.

    Article  Google Scholar 

  • Lin, B.-W. (2003). Technology transfer as technological learning: a source of competitive advantage for firms with limited R&D resources. R&D Management, 33(3), 327–341.

    Article  Google Scholar 

  • Liu, X., & White, S. (2001). Comparing innovation systems: a framework and application to China’s transitional context. Research Policy, 30(7), 1091–1114.

    Article  Google Scholar 

  • Lundvall, B.-Å. (2005). National innovation system-analytical concept and development tool. DRUID Tenth Anniversary Summer Conference 2005: Copenhagen.

  • Mansfield, E., Romeo, A., Schwartz, M., Teece, D., Wagner, S., & Brach, P. (1982). Technology transfer, productivity, and economic policy. New York: Norton.

    Google Scholar 

  • Marengo, L. (1992). Knowledge, coordination and learning in an adaptive model of the firm. Sussex: Press of Sussex University.

    Google Scholar 

  • Martinez, H., Jaime, A., & Camacho, J. (2012). Relative absorptive capacity: a research profiling. Scientometrics, 92(3), 657–674.

    Article  Google Scholar 

  • Mathews, J. A., & Cho, D.-S. (1999). Combinative capabilities and organizational learning in latecomer firms: the case of the Korean semiconductor industry. Journal of World Business, 34(2), 139–156.

    Article  Google Scholar 

  • Mehta, A., Rysman, M., & Simcoe, T. (2009). Identifying the age profile of patent citations: new estimates of knowledge diffusion. Journal of Applied Econometrics, 25(7), 1179–1204.

    Article  MathSciNet  Google Scholar 

  • Mowery, D. C., Oxley, J. E., & Silverman, B. S. (1998). Technological overlap and interfirm cooperation: implications for the resource-based view of the firm. Research Policy, 27(5), 507–523.

    Article  Google Scholar 

  • Mytelka, L. K., & Smith, K. (2002). Policy learning and innovation theory: an interactive and co-evolving process. Research Policy, 31(8/9), 1467–1479.

    Article  Google Scholar 

  • Perez, C., & Soete, L. (1988). Catching up in technology: entry barriers and windows of opportunity. In G.e.a. Dosi (Ed.), Technical change and economic theory (pp. 458–479). New York: Pinter.

    Google Scholar 

  • Pitkethly, R. H. (2001). Intellectual property strategy in Japanese and UK companies: patent licensing decisions and learning opportunities. Research Policy, 30(3), 425–442.

    Article  Google Scholar 

  • Schumpeter, J. A. (1934). The theory of economic development. Cambridge: Harvard University Press.

    Google Scholar 

  • Senge, P. M. (1990). The leader’s new work: building learning organizations. Sloan Management Review, 32(1), 7–23.

    Google Scholar 

  • Simonin, B. L. (1999). Ambiguity and the process of knowledge transfer in strategic alliances. Strategic Management Journal, 20(7), 595–623.

    Article  Google Scholar 

  • Teece, D. J. (1977). Technology transfer by multinational firms: the resource cost of transferring technological know-how. Economic Journal, 87(346), 242–261.

    Article  Google Scholar 

  • Teece, D., Pisano, G., & Schuen, A. (1990). Firm capabilities, resources, and the concept of strategy, CCC Working Paper. Berkeley: University of Berkeley.

    Google Scholar 

  • Trajtenberg, M. (1990). A penny for your quotes: patent citations and the value of innovations. RAND Journal of Economics, 21(1), 172–187.

    Article  Google Scholar 

  • Tsai, K.-H., & Wang, J.-C. (2009). External technology sourcing and innovation performance in LMT sectors: an analysis based on the Taiwanese technological innovation survey. Research Policy, 38(3), 518–526.

    Article  Google Scholar 

  • Utterback, J. M., & Abernathy, W. J. (1975). A dynamic model of process and product innovation. The International Journal of Management Science, 3(6), 639–656.

    Google Scholar 

  • Vanhaverbeke, W., Duysters, G., & Noorderhaven, N. (2002). External technology sourcing through alliances or acquisitions: an analysis of the application-specific integrated circuits industry. Organization Science, 13(6), 714–733.

    Article  Google Scholar 

  • Vernon, R. (1966). International investment and international trade in the product cycle. Quarterly Journal of Economics, 80, 190–207.

    Article  Google Scholar 

  • von Hippel, E. (1994). “Sticky information” and the locus of problem solving: implications for innovation. Management Science, 40(4), 429–439.

    Article  Google Scholar 

  • Yayavaram, S., & Ahuja, G. (2008). Decomposability in knowledge structures and its impact on the usefulness of inventions and knowledge-base malleability. Administrative Science Quarterly, 53(2), 333–362.

    Article  Google Scholar 

  • Ying-Li, J., Wang, Y., Salomo, S., & Vanhaverbeke, W. (2013). Have Chinese firms learned from their prior technology in-licensing? An analysis based on patent citations. Scientometrics, 95(1), 183–195.

    Article  Google Scholar 

Download references

Acknowledgments

This research is funded by Sichuan University (skyb201302).

Author information

Authors and Affiliations

  1. School of Business, Sichuan University, Wangjiang Road 29, Chengdu, 610064, China

    Yuandi Wang

  2. Innovation and Entrepreneurship Research Institute, Sichuan University, Wangjiang Road 29, Chengdu, 610064, China

    Yuandi Wang

  3. Department of Economics and Business, Hasselt University, Agoralaan–Gebouw D, DE-3590, Diepenbeek, Belgium

    Nadine Roijakkers & Wim Vanhaverbeke

  4. Esade Business School, Avinguda Esplugues 92, 08034, Barcelona, Spain

    Wim Vanhaverbeke

Authors
  1. Yuandi Wang
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Nadine Roijakkers
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Wim Vanhaverbeke
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Yuandi Wang.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Wang, Y., Roijakkers, N. & Vanhaverbeke, W. How fast do Chinese firms learn and catch up? Evidence from patent citations. Scientometrics 98, 743–761 (2014). https://doi.org/10.1007/s11192-013-1016-6

Download citation

  • Received:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11192-013-1016-6

Keywords

Search

Navigation