Abstract: Many studies show that China’s patent law amendment, strengthening of patent protection and the expansions of FDI and trade have contributed to a growing surge of foreign patent in China. Using data at the industry level from China’s State Intellectual Property Office (SIPO) and the U.S. Patent and Trademark Office (USPTO) on patents covering 19 countries and regions from 1985 to 2008, we explore two hypotheses to explain the increasing foreign propensity to patent in China: the market covering and competitive threat hypotheses. The results show strong support for the competitive threat hypothesis. However, the foreign patenting surge in China does not mean China has more access to outsource advanced technology; on the contrary, based on the analysis of technology proximity, the technology spillover from foreign countries in China is limited.
Key words: foreign patents in China, technology spillover, technology proximity

Abstract: Emerging market firms in high-technology industries have long been thought of as laggards. We argue that this paradigm needs to be reassessed. Using biotechnology as an example for a radical technology, we argue that emerging markets, compared to developed markets, are well positioned to pursue this type of technology since they have low path dependencies in traditional therapies and have strong incentives to invest in imitative abilities. By becoming leading imitators and leapfroggers, our initial findings indicate that emerging markets are no longer laggards in this industry and are responsible for a substantial portion of these newer drug development initiatives worldwide.

Abstract: This study explores how subnational differences in a large emerging economy can moderate the relationship between research and development (R&D) and firm performance. Using a sample of Russian firms, we find that subnational institutional development significantly alters the R&D-performance link. Specifically, we find that this relationship is more positive (less negative) in regions with better market-supporting institutions and less positive (more negative) in regions with higher levels of corruption.

Abstract: National context shapes both absorptive capacity and innovation systems and hence the ability of firms to acquire external knowledge. Using data from Turkish firms we test whether broad or deep search is more appropriate for emerging economy firms with collaborations in other emerging or developed economies. Developed economies are more likely to offer novel knowledge but absorbing this knowledge is more difficult. Emerging economies are less likely to offer novel knowledge but absorption is easier. This suggests that the combination of depth and developed economy collaboration has positive innovation performance implications while breadth and emerging economy collaboration is an appropriate combination. Our results provide support for these expectations.