The spatial configuration of innovation networks in China

China is rising and gradually developing into an innovation-oriented economy. This transition is fueled by public and private investment in education and by increasing inputs into science and technology. Little attention, however, has been paid to the great differences in China-specific context peculiarity. Hence, the paper assesses Chinese innovation networks using a comprehensive analytical model that includes network configuration, regional environment, government interference and firm attributes. The empirical analysis examines China’s machinery manufacturing industry to test the determinants of the spatial character of Chinese innovation networks based on questionnaire surveys and illustrative cases. Our study finds that Chinese innovation networks are affected not only by innovation resource endowments and firm attributes, but also by government interference and regional culture. Regarding the influence of regional culture, the typical Northern culture with the importance of guanxi plays an important role in the process of searching for partners and makes the innovation network and interpersonal network interwoven. Firms’ ownership and innovation ability are the two essential variables to determine whether any of the regional elements are of significance. © 2018 The Author(s

China - International Linkages: Introduction to the Special Issue

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Implications of China's innovation policy shift: Does “indigenous” mean closed?

China's government aims to become an innovation nation and promotes the development of so-called indigenous innovation. Under this paradigm of state-encouraged innovation, however, it is unclear how domestic firms organize their innovation processes. We distinguish between two strategies in that respect: closed versus open innovation. Our findings suggest that firms with closed innovation processes collaborate in close geographic distance, rely on DUI-modes of learning, and collaborations are based on guanxi. In contrast, firms with open innovation processes collaborate over large distances and rely on STI-modes of learning that are not necessarily guanxi-based. The findings help to understand the heterogeneous nature of indigenous innovation in China. © 2020 The Authors. Growth and Change published by Wiley Periodicals LL

Innovation success in an emerging economy: A comparison of R&D-oriented companies in Turkey

Knowledge and innovation capacities are unevenly distributed on a global scale, with national or regional settings playing a crucial role when it comes to the production and usage of knowledge. In particular, emerging economies are less equipped with relevant institutions and resources, meaning that firms residing in such contexts are likewise dealing with lacking innovation capabilities. However, achieving innovation is highly relevant for the economic development of firms and regions. Therefore, we aim to identify key factors for innovation strategies in a differentiated corporate landscape that might affect innovation success. Survey data from the innovative segment of 225 manufacturing firms in Istanbul is used in a two-step methodological approach. We apply dimension reduction through principal component analysis and use the resulting components in logistic regression analysis to estimate their effects on firms’ innovation success. The results reveal not only important findings about factors for the innovation success of firms, but also highly relevant insights about firms’ innovation strategies. The usage of internal and external R&D resources varies with firm type. In addition, we find that external R&D resources determine firms’ internationalization strategies. Hereof, we suggest policy implications for distinct firm types to support diverse innovation strategies and consequently innovation success. © The Authors. Growth and Change published by Wiley Periodicals LLC

Crisis and Recovery in the Pearl River Delta. Growth and Employment in the Electronics Industry

Compared with most other regions and industries in China, the electronics industry in the Pearl River Delta (PRD) has been hit hard by the crisis of 2008 and 2009. Numerous companies have ceased operations and thousands of workers have been laid off. The orientation of the electronics industry towards exporting low-cost products has proven to be a point of weakness in this ongoing crisis. The aims of this article are threefold: firstly, to highlight the key reasons for the crisis and the Pearl River Delta’s susceptibility to it; secondly, to analyse the channels through which the global crisis affected the PRD, and thirdly, to analyse the immediate effects on companies. All analyses are based on firm-level data acquired in 2009 with support from DFG SPP 1233. They show that the crisis has mainly affected the internationally oriented companies in the PRD

Internationalization and domestic political support: A differentiation of R&D-related foreign and domestic firms in Turkey

Purpose – This paper contributes insights into how different firm types in the emerging market (EM) of Turkey respond to upgrading pressures in terms of internationalization and the usage of domestic political support. It seeks to highlight how the usage of and the responses to different strategies, connections and policy instruments vary with firm types. Design/methodology/approach – Binary logistic regression analysis is used to differentiate and identify characteristics of firms regarding market-seeking strategies and their usage of institutional and financial support. The analysis is based on survey data from firms located in the metro-region of Istanbul: advanced market multinational enterprises (AMNEs), Turkish MNEs (TMNEs) and domestic Turkish firms (DTFs). Findings – Different types of firms within the population of innovative firms in the EM setting of Turkey show significant variety regarding the usage of and the responses to key factors affecting internationalization. AMNEs particularly benefit from investment and export incentives as well as from establishing political connections in Turkey. DTFs significantly use tax incentives and primarily seek advanced markets. TMNEs particularly benefit from investment and export incentives and prefer to target advanced markets. Research limitations/implications – Using Turkey as a single-country setting is a limitation to the generalizability of the results. Future studies could use more cases of AMNEs to compare different countries of origin. In addition, the intended focus on R&D-related firms produces specific outcomes for such companies. Practical implications – National and regional policies need to pursue different strategies for the surveyed groups of firms to attract and maintain foreign direct investments (FDIs) of AMNEs as well as to support outward FDIs of domestic firms and EM MNEs. In particular, policies for market entries and knowledge sourcing in advanced markets are becoming a crucial factor for EM firms in overcoming a shortage of resources at home. Originality/value – This paper’s findings challenge existing theories such as the concept of psychic distance or liabilities of foreignness, which do not always provide an adequate explanation for internationalization activities of EM firms. In addition, it is highly relevant to apply an eclectic or multidimensional concept when conducting research in EMs in order to capture the interrelated constructs of upgrading, internationalization and political support.WOS:0008364183000012-s2.0-8513539580

The Myth of Global Science Collaboration - Collaboration patterns in epistemic communities

Scientific collaboration is often perceived as a joint global process that involves researchers worldwide, regardless of their place of work and residence. Globalization of science, in this respect, implies that collaboration among scientists takes place along the lines of common topics and irrespective of the spatial distances between the collaborators. The networks of collaborators, termed 'epistemic communities', should thus have a space-independent structure. This paper shows that such a notion of globalized scientific collaboration is not supported by empirical data. It introduces a novel approach of analyzing distance-dependent probabilities of collaboration. The results of the analysis of six distinct scientific fields reveal that intra-country collaboration is about 10-50 times more likely to occur than international collaboration. Moreover, strong dependencies exist between collaboration activity (measured in co-authorships) and spatial distance when confined to national borders. However, the fact that distance becomes irrelevant once collaboration is taken to the international scale suggests a globalized science system that is strongly influenced by the gravity of local science clusters. The similarity of the probability functions of the six science fields analyzed suggests a universal mode of spatial governance that is independent from the mode of knowledge creation in science.Comment: 13 pages, 3 figures, 1 tabl

The competitiveness of China's leading regions: benchmarking their knowledge-based economies

China's spectacular economic growth has been spatially uneven, with much development occurring in eastern coastal areas. In particular, three metropolitan 'super-regions' have become China's most competitive knowledge-based economies, consisting of the Pearl River Delta, the Yangtze River Delta, and the Bohai Gulf Region. This paper benchmarks the competitiveness of these regions, with a view to exploring which region is best positioned to become the most dominant knowledge-based economy over time. Through the theoretical lens of dynamic comparative advantage, it is shown that each region has hugely increased its competitiveness through improvements in the capacity to absorb and diffuse knowledge. It is further shown that due to multi-dimensional advantages the Yangtze River Delta, incorporating the Shanghai metropolis, is best positioned to become the dominant hub of China’s future knowledge economy. It is concluded that China’s leading regions will require further economic policy adjustments in order to secure their future competitiveness