An investigation of Chinese textile firms’ R&D performance
- UNCG Author/Contributor (non-UNCG co-authors, if there are any, appear on document)
- Elena Karpova, Putman & Hayes Distinguished Professor (Creator)
- Institution
- The University of North Carolina at Greensboro (UNCG )
- Web Site: http://library.uncg.edu/
Abstract: The purpose of this study was to enhance the understanding of Chinese textile manufacturers' research and development (R&D) performance. Specifically, the study empirically examined (a) current trends of R&D activities in the Chinese textile industry; (b) R&D intensity among Chinese textile firms and determinants of its variation; and (c) R&D effectiveness among Chinese textile firms and factors impacting it. The research results are based on survey data from 768 textile manufacturers located in a Southeastern County with a mature textile and apparel cluster. Logistic regression was employed for data analyses. The results showed that R&D investment levels among Chinese textile firms are relatively low in comparison with advanced textile industries in developed countries. Chinese textile firms with international operations had a higher R&D intensity, or investment level, than those without international operations. Foreign ownership and financial resources were not significant predictors of the firm's R&D intensity. Chinese textile firms that relied on acquiring new machinery/technology and were involved in internal R&D activities were more likely to have higher R&D effectiveness, which translated into positive profit margin. The R&D intensity did not contribute significantly to R&D effectiveness. To offset increasing production cost and sustain its diminishing low-cost comparative advantage, the Chinese textile industry's next step is to focus on R&D. The study offers strategic directions to the industry and policy makers that might be helpful to keep the industry competitive in the global marketplace.
An investigation of Chinese textile firms’ R&D performance
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Created on 9/9/2021
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Additional Information
- Publication
- Clothing and Textiles Research Journal, 30(3), 217-231
- Language: English
- Date: 2012
- Keywords
- China, textile industry, research, development