Access to Foreign Knowledge Boosts Product Innovation in Chinese Firms.
The article explores how Chinese firms can improve product innovation by accessing foreign knowledge. By studying over 160,000 manufacturing firms in China, the researchers found that firms benefit from foreign knowledge through innovation clusters formed by foreign investments and export activities. Investing in research and development and marketing activities also helps firms absorb foreign knowledge better. This study shows that accessing foreign knowledge is crucial for firms in emerging markets to enhance their product innovation capabilities.