Employment Growth and Product Innovation in China: A Firm Level Comparison across Provinces and City Districts By Jacques Mairesse † with Yanyun Zhao‡ and Feng Zhen§ † INSEE-CREST (Paris, France), UNU-MERIT (Maastricht University, Netherlands) and NBER (USA). [email protected]‡ Renmin University of China, No. 59 Zhongguancun Avenue, Beijing, China § Central University of Finance and Economics (Beijing, China) and UNU- MERIT Beijing Metropolitan International Statistics Forum 2008
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By Jacques Mairesse † with Yanyun Zhao ‡ and Feng Zhen §
By Jacques Mairesse † with Yanyun Zhao ‡ and Feng Zhen § † INSEE-CREST (Paris, France), UNU-MERIT (Maastricht University, Netherlands) and NBER (USA). [email protected] ‡ Renmin University of China, No. 59 Zhongguancun Avenue, Beijing, China - PowerPoint PPT Presentation
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Employment Growth and Product Innovation in China:
A Firm Level Comparison across Provinces and City Districts
‡ Renmin University of China, No. 59 Zhongguancun Avenue, Beijing, China
§ Central University of Finance and Economics (Beijing, China) and UNU-MERIT
(Maastricht University, Netherlands)
Beijing Metropolitan International Statistics Forum 2008
Beijing, 20 October 2008 2
OUTLINE
• Innovation and Employment
• Data and Descriptive Statistics
• Empirical Framework and Estimates
• Employment Growth Decomposition
• Perspectives and Data Requirements for Further Analysis
Beijing, 20 October 2008 3
Innovation and Employment
• Innovation and its importance in world development
• Innovation and employment
• Assessing the impact of innovation on employment at the firm level: positive or negative? large or small?
• Present analysis for four industries: Textile, Wearing Apparel, Transport Equipment, Electronic Equipment, and three recent years 2004-2006
Beijing, 20 October 2008 4
Data and Descriptive Statistics
• NBS’s annual industry survey of all State-owned firms, and non-state-owned firms with sales higher than 5 million RMB Yuan (i.e., Limited-liability, Share-holding, Private, Hong-Kong, Macao and Taiwan, Foreign)
• Coverage about 60% in four industries, varying from about 50% to 70% across provinces
Beijing, 20 October 2008 5
Descriptive Statistics
• 2004-2006 Growth rate of labor in Textile, Wearing Apparel, Transport Equipment, Electronic Equipment:
- China: 5.9 % ; 5.4 %; 8.8 %;13.8 %
- Beijing: 5.4 % ; 3.3 %; 7.3 %;10.1 %
• 2004-2006 Corresponding Growth rate of productivity:
- China: 29.6% ; 27.1%; 27.2%;27.8%
- Beijing: 17.8% ; 17.4%; 19.1%; 21.9%
Beijing, 20 October 2008 6
Descriptive Statistics
• 2004-2006 Growth rate of Output in Textile, Wearing Apparel, Transport Equipment, Electronic Equipment:
- China: 35.5 % ; 32.5 %; 36.0 %;41.6 %
- Beijing: 23.3 % ; 20.7 %; 24.2 %; 32.0 %
• 2006 percentage Shares of new products introduced in 2004-2006 (NPPO):
- China: 5.9% ; 2.8%; 6.5%;10.3%
- Beijing: 9.2% ; 5.1%; 9.6%; 54.5%
Beijing, 20 October 2008 7
Descriptive Statistics
• 2004-2006 Growth rate of Output in Textile, Wearing Apparel, Transport Equipment, Electronic Equipment for product innovating firms (all products: “new” and “old”):
- China: 40.3 % ; 40.0 %; 37.2 %; 39.5 %
- Beijing: 23.3 % ; 20.7 %; 24.2 %; 32.0 %
• 2004-2006 Corresponding Growth rate of output for product non-innovating firms (“old products”):
- China: 35.1 % ; 32.0 %; 35.7 %; 42.1 %
- Beijing: 23.3 % ; 20.7 %; 24.2 %; 32.0 %
Beijing, 20 October 2008 8
Descriptive Statistics
• 2004-2006 Growth rate of Output in Textile, Wearing Apparel, Transport Equipment, Electronic Equipment for product innovating
Average specific trend -30.2 -28.3 -27.6 -32.1 -1.9 -7.5 -5.7 -5 -5.6
Growth due to non-innovators 32.2 30.0 29.3 33.9 4.7 5.4 12.5 7.9 5.8
Growth due to product innovation 3.9 3.6 7.1 12.0 5.5 8.0 7.4 3.9 2.4
of which: old product -0.9 -2.0 -3.6 -9.8 - - - - -
new product 4.8 5.6 10.7 21.8 - - - - -
China (2004-2006) European Manufacturing (1998-2000)
Number of Observations 12721 6199 5656 4184 4631 1319 4548 2493 4618
Beijing, 20 October 2008 22
-120%-100%-80%-60%-40%-20%
0%20%40%60%80%
100%120%
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Productivity trend Non-Inno Inno-Old Inno-New
Employment Growth Decomposition__Electronic
* After cleaning, the number of firms in these provinces are less than 20, and not included in the estimation .
* * * * * * *
Beijing, 20 October 2008 23
Some references
• Harrison, R., J. Jaumandreu, J. Mairesse and B. Peters (2008), "Does Innovation Stimulate Employment? A Firm-level Analysis Using Comparable Micro-data from four European countries", NBER WP 14216, August 2008.
• Hall, B.H., F. Lotti and J. Mairesse (2008), "Employment, Innovation, and Productivity:Evidence from Italian Micro-data", Industrial and Corporate Change, 17 (4), pp. 813-839.
• Ping He, Jinchang Qian, Nannan Lundin, and Fredrick Sjöholm (2008), "Technology Development and Job Creation in China’s Manufacturing Sector", Mimeo presented at the 2d MEIDE Conference, Renmin University, Beijing, April 21-23, 2008.
• …
Beijing, 20 October 2008 24
Perspectives and Data requirements for Further Analysis
• Process innovation
• Employment by skills
• Output prices
• Wage differentials
• Other demand shifters: export
• From firm level analysis to macro analysis: survival, strategic behavior from competitors, ...
• …and more
Beijing, 20 October 2008 25
Last but not Least
THANK YOU!Jacques Mairesse (INSEE-CREST, UNU-MERIT and NBER)