Technical standardization and total factor productivity in innovation-driven development: Evidence from China.
Shuo Wang1, Yueping Zheng1, Qian Wang2
1Business School, Shandong Jianzhu University, Jinan, China.
Plos One
|October 5, 2023
Summary
Technical standards and research & development (R&D) are key drivers of innovation-driven development. Standardization enhances total factor productivity (TFP) by improving technical efficiency, while R&D boosts both technical development and efficiency.
Area of Science:
- Economics
- Innovation Studies
- Technology Policy
Background:
- Innovation-driven development relies on knowledge and skills for productivity growth, distinct from investment or resource drives.
- Integrating technical standards into innovation systems offers theoretical insights into development strategies.
Purpose of the Study:
- To investigate the long and short-term relationships between standardization, R&D, and innovation-driven development in China.
- To analyze the impact of standardization and R&D on total factor productivity (TFP) and its components.
Main Methods:
- Developed a Provincial Error Correction Model (PECM).
- Utilized China's inter-provincial panel data from 2007 to 2020.
- Examined the influence of standardization and R&D on economic development metrics.
Main Results:
- Both standardization and R&D are critical engines for innovation-driven development in China.
- Standardization primarily impacts TFP by enhancing technical efficiency.
- R&D contributes to both technical development and technical efficiency improvement.
- The impact of standard drafters' production scale on scale efficiency shifted from insignificant to substantial after 2014.
Conclusions:
- Standardization and R&D are essential for fostering innovation-driven growth.
- Policy interventions should consider the distinct roles of standardization and R&D in boosting productivity.
- The evolving impact of production scale in standardization highlights the importance of macroeconomic reforms.
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