Labor Costs Rising and the Behavior of Enterprises: Transfer or Innovate?

DOI

10.2991/978-94-6463-042-8_129How to use a DOI?

Keywords

Labour costs rising; Transfer; Innovation; Market transformation; Regional differences

Abstract

Recently, China’s labour costs were rising fast, the enterprises were facing the choice that moving to lower cost regions or innovating. In order to analyse the impact of labour cost rising on enterprise innovation behaviour, by establishing a model with innovation arbitrage, this paper makes an empirical analysis using provincial panel data in Chinese industrial department from 2000 to 2011. The study shows that the rising labour costs had a stimulating role on the enterprise’s R&D input, and the output of innovation also increased, but the patents couldn’t be effectively transformed into market products. The profound analysis by different regions shows that the innovation inputs and outputs of eastern enterprises are better than the central and western.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Gensheng Li
AU  - Guocheng Li
PY  - 2022
DA  - 2022/12/29
TI  - Labor Costs Rising and the Behavior of Enterprises: Transfer or Innovate?
BT  - Proceedings of the 2022 International Conference on mathematical statistics and economic analysis (MSEA 2022)
PB  - Atlantis Press
SP  - 914
EP  - 920
SN  - 2352-538X
UR  - https://doi.org/10.2991/978-94-6463-042-8_129
DO  - 10.2991/978-94-6463-042-8_129
ID  - Li2022
ER  -