Can A Technology Innovation Strategy Really Enhance Corporate Competence? An Empirical Analysis Based on A Comparison Between Domestic and Foreign Companies in Chinese High-Tech Industry

This paper focuses on the influence of technology innovation strategy on corporate competence in high-tech industry. Based on the relationship frame of technology innovation input - output - corporate competence, a panel data of the sample industry from 1995 to 2004 is used to do a regression analysis. In the analyzing process, the entropy method is introduced to measure the corporate technology innovation output and corporate competence. It is found that in high-tech industry, corporate R&D expenditure on capital is positive to general technology innovation output and corporate competence, and R&D expenditure on labor is negative to corporate competence. Furthermore, R&D expenditure on labor has negative influence on general output of technology innovation in foreign companies. Another important founding is that the general output of technology innovation is significantly positive to corporate competence in foreign companies, which is not found in domestic companies. This result, to some extend, indicates that domestic companies have disadvantages in transforming the technology innovation output to tangible benefits and competences. On the basis of these founding and analysis, some suggestions about technology innovation strategies are put forward for the companies in high-tech industry, especially for domestic companies. At last, some limitations are pointed out for future research.