Productivity in China's high technology industry:regional heterogeneity and R&D

This paper analyzes the impact of Research and Development (R&D) on the productivity of China's high technology industry. In order to capture important differences in the effect of R&D on output that arise from geographic and socioeconomic differences across three major regions in China, we use a novel semiparametric approach that allows us to model heterogeneities across provinces and time. Using a unique provincial level panel dataset spanning the period 2000–2007, we find that the impact of R&D on output varies substantially in terms of magnitude and significance across different regions. Results show that the eastern region benefits the most from R&D investments, however it benefits the least from technical progress, while the western region benefits the least from R&D investments, but enjoys the highest benefits from technical progress. The central region benefits from R&D investments more than the western region and benefits from technical progress more than the eastern region. Our results suggest that R&D investments would significantly increase output in both the eastern and central regions, however technical progress in the central region may further compound the effects of R&D on output within the region

Effects of urbanization on precipitation in Beijing

Since the 1980s, the industrialization and urbanization of the Beijing area has entered a period of high-speed growth. This paper asks the question: How have such great changes in urban land-use over the past decades impacted urban precipitation? In this study, we investigate and analyze the effects of urbanization on the summer precipitation in Beijing using numerical modeling approaches. Applying the numerical mesoscale atmospheric model METRAS, we determine the impact of surface cover on 13 heavy precipitation events. We implement five idealized land-use scenarios: Reference scenario, No-urban scenario, High-building scenario, Urban-expand scenario, and No-vegetation scenario. There is nearly no difference in the mean precipitation sum across all 13 simulated rain events and between the urban-scenarios and the rural-scenario. We find effects of urbanization on precipitation only in some single cases. We conclude urbanization does effect the local precipitation of Beijing; it reduces rainfall in the urban area and increases rainfall downwind of the city. In some cases, larger percentage of sealed area could give rise to the heavier precipitation or extreme rain events. And we conclude the urban pattern significantly impacts rainfall area and intensity. Increased urban size or density may speed up rain clouds while increased urban height may disrupt or bifurcate the clouds. Our results offer a new viewpoint and further the study of urban impacts on precipitation (UIP). The results are important for sustainable and harmonious development of the economy, society, and environment in Beijing as well as other cities with rapid urbanization

Electricity portfolio innovation for energy security: the case of carbon constrained China

China’s energy sector is under pressure to achieve secure and affordable supply and a clear decarbonisation path. We examine the longitudinal trajectory of the Chinese electricity supply security and model the near future supply security based on the 12th 5 year plan. Our deterministic approach combines Shannon-Wiener, Herfindahl-Hirschman and electricity import dependence indices for supply security appraisal. We find that electricity portfolio innovation allows China to provide secure energy supply despite increasing import dependence. It is argued that long-term aggressive deployment of renewable energy will unblock China’s coal-biased technological lock-in and increase supply security in all fronts. However, reduced supply diversity in China during the 1990s will not recover until after 2020s due to the long-term coal lock-in that can threaten to hold China’s back from realising its full potential

Subsidiary roles as determinants of subsidiary technology sourcing: empirical evidence from China

Emerging economies have become new destinations for knowledge sourcing, forcing Multinational Enterprises (MNEs) to reconfigure their global innovation strategies and structure. While foreign subsidiaries located in emerging economies were conventionally viewed as having market or efficiency seeking roles, they have started to evolve towards knowledge-seeking roles. We argue that the conventional wisdom shall be reassessed considering this recent shift. We empirically investigate 129 manufacturing MNE subsidiaries of Fortune 500 companies in China, in terms of their roles and sources of technology. Our results indicate that market and knowledge seeking subsidiaries located in China tend to have a positive impact on the generation of new knowledge, either through locally established MNE R&D laboratories or through collaborations with local firms and scientific institutions