E-commerce, R&D, and productivity: Firm-level evidence from Taiwan

Academic Article


  • This study investigates the impact of e-commerce and R&D on productivity, using a unique panel dataset obtained from Taiwanese manufacturing firms for the period from 1999 to 2002. We specifically consider the network externalities of e-commerce and employ the system generalized method of moment (GMM) technique to deal with the endogenous problem of e-commerce adoption. The empirical results show that both e-commerce and R&D capital have a positive influence on productivity, while R&D exhibits a larger productivity-enhancing effect. We also find a complementary relationship between e-commerce and R&D on enhancing productivity. Crucially, the inter-industry network externality of e-commerce significantly contributes to productivity.
  • Keywords

  • L60 O30, Productivity, R&, D spillovers, E-commerce, Network externalities
  • Author List

  • Liu T-K; Chen J-R; Huang CCJ; Yang C-H
  • Start Page

  • 272
  • End Page

  • 283
  • Volume

  • 25
  • Issue

  • 4