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The Innovation Process of a Privately-Owned Enterprise and a State-Owned Enterprise in China

Discussion Papers

No.470

by KANG Byeongwoo
July 2014

ABSTRACT

This study compares the innovation process of a privately-owned enterprise and a state-owned enterprise in China using their patent data. Huawei and ZTE were selected for this study because they experienced the same historical environment in the same industry from the same region in China leaving their owner types as their critical difference. This study investigates the difference in the innovation process in R&D between a privately-owned and a state-owned enterprise by analyzing (1) domestic and international patent application pattern, (2) co-application and co-applicants, (3) knowledge accumulation inside Huawei and ZTE, and (4) knowledge spillover to domestic and foreign firms.


Keywords: China, Patent data, Privately-owned enterprise, State-owned enterprise
JEL classification: L25, L96, O31

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