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An Empirical Study of China's Private Entrepreneurs' Innovation Behavior in Transition Economy

Drawing on a national survey, this study provides empirical and theoretical support for private entrepreneurs' innovation behaviors in China transition economy. We found that, (a) private entrepreneurs are less likely to invest in R&D; (b) higher investment in R&D does not mean a favorable firm performance; (c) R&D investment has positive relationship with firm size, firm age and entrepreneurs education background; (d) Entrepreneurs chose form innovation most were for surviving of the confiscation; (e) private firms in highly regulated industries are less likely than those in other industries to invest in R&D. These findings are helpful to understand the distinctive innovation behavior of China's private entrepreneurs.