Work

Does Higher Education Promote Firm Innovation in China?

Year: 2020

Type: article

Abstract: Endogenous growth theories have underpinned the pivotal role of education in innovation. However, our empirical study uncovers a mixed effect of higher education on firm innovation in China. Using Chinese Patent Census Data, a unique dataset, this paper is able to quantify innovation in China by incorporating a quality dimension for the first time. By merging the patent data with the Chinese Industrial Enterprise Database and province-level data on education, we find that the number of higher education institutions has a negative impact on firm-level innovation. However, the quantity of elite higher education institutions at the provincial level exerts a positive impact on firm innovation. In addition, heterogeneity analyses show that the effect of elite higher education on firm innovation is significantly positive for privately owned enterprises, but insignificant for state- and foreign-owned enterprises. Furthermore, the positive effect of elite higher education on innovation in high-tech industries is larger than in other industries.

Source: Sustainability

DOI: 10.3390/su12187326

Authors: Xia Pan, Yuning Gao, Dong Guo, Wenyin Cheng

Institutions: Central University of Finance and Economics, Tsinghua University, Columbia University, Institute of Developing Economies, Japan External Trade Organization

Language: English

Topic: Firm Innovation and Growth

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Industry, innovation and infrastructure, Quality education

Open Access status: gold

Estimated APC paid: $1,901