High and New Technology Enterprise Performance and Financial Constraints: Is Clustering Efficient?

Abstract

Using firm level panel data for non-listed high and new technology enterprises in the Yangtze River Delta of China from 2002–2009, we investigated the importance of the high and new technology industrial development zone (HNTIDZ) established by the Chinese government for improving enterprise performance. We found that high and new technology enterprises located in HNTIDZs enjoy superior productivity, growth potential, export and innovation activity; better access to trade credit and bank loan facilities plays a significant role in promoting productivity, growth and export, but it does not affect innovation activity; in national HNTIDZs, enterprises that are more in need of trade credit and bank loan have better performance in the respect of productivity, growth, export as well as innovation activity.