Publication Type
Journal Article
Version
acceptedVersion
Publication Date
10-2025
Abstract
We document that a firm's research and development (R&D) expenditure depends on its product diversity. Combining with the fact that Chinese manufacturers often enter new product markets via technology adoption, we develop a quantitative framework of innovation and technology adoption, allowing firms to expand their product scopes. Firms adopt technologies across multiple fields to expand their knowledge base, which in turn serves as an input for subsequent innovation or adoption. Counterfactual analysis from the 2000s reveals that two-thirds of knowledge privately held by all firms is generated through adoption, accounting for one-third of aggregate innovation.
Keywords
technology adoption, innovation capability, product expansion
Discipline
Asian Studies | Industrial Organization | Technology and Innovation
Publication
Journal of Economic Dynamics and Control
Volume
179
ISSN
0165-1889
Identifier
10.1016/j.jedc.2025.105177
Publisher
Elsevier
Citation
HE, Qiugu; LUO, Xuan; and ZHENG, Fan.
Product technology adoption and aggregate innovation. (2025). Journal of Economic Dynamics and Control. 179,.
Available at: https://ink.library.smu.edu.sg/soe_research/2874
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1016/j.jedc.2025.105177
Included in
Asian Studies Commons, Industrial Organization Commons, Technology and Innovation Commons