Impact of Government Intervention on Industrial Cluster Innovation Network in Developing Countries

Qi Zhong and Tang Tang

Emerging Markets Finance and Trade, 2018, vol. 54, issue 14, 3351-3365

Abstract: This article aims to disclose the exact relationship between government intervention and the evolution of industrial cluster innovation network in developing countries. Therefore, this article examines the role of government intervention in the evolution of the network from the perspective of network structure. After reviewing the structure of the innovation network, the author set up an evolution model of industrial cluster innovation network based on weighted scale-free network. Through computer simulations, it is learned that government intervention has a great impact on the evolution of industrial cluster innovation network. In the network formation stage, the impact of government intervention on the average shortest path exhibits as a U-shaped trend. In this stage, the government should intervene moderately to keep a short distance and close contact between the subjects. In the network stabilization stage, the effect of government intervention on the average shortest path is in the shape of an inverted U. In this case, the government should reduce the intervention, encourage enterprise innovation, and reduce the innovation risk of the whole network. The findings provide valuable reference for research in relevant fields.

Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:mes:emfitr:v:54:y:2018:i:14:p:3351-3365

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DOI: 10.1080/1540496X.2018.1434504

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