This paper examines how global production networks have benefited technological upgrading in the semiconductor industry in China. The evidence shows that trade has impacted positively on technological capabilities. The empirical evidence shows that 93%of firms were engaged in incremental innovation activities, while 87%in new product development in 2012. The mean R&D intensity was 6.3%. State-owned enterprises showed the lowest mean of 5.3%. The mean share of R&D personnel in workforce was 28.2%. Government support (90%) and collaboration with universities and research institutes (87%) have been pertinent in firms' participation in R&D activities.
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Kong et al. (2014) studied this question.
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