Maximising product innovation in Chinese state-owned enterprises

摘要

Chinese SOEs have been experiencing dramatic changes over the last three decades. Although there is an active debate on the advantages and disadvantages of Chinese SOEs, few studies pay attention to the quantitative relationship between Chinese SOEs' new product development and the ownership structure of the industries. Does the change of weight of SOEs in an industry affect the overall innovation output of the industry? By examining new product development data in all 39 industries in China from 2006 to 2010, this research measures the influence of the SOEs on the industrial innovation at different ownership scenarios. Through comparative analysis between different industrial groups and regression, this study reveals that in the industries which has 15%-30% of SOEs, the overall innovation demonstrates the best results, which are reflected in more new products, larger monetary value of innovation, and a higher efficiency of new products development.