How Does the Concentration of Determinants Affect Industrial Innovation Performance? – An Empirical Analysis of 23 Chinese Industrial Sectors

Shansong Huang, Yang Bai and Qingmei Tan

PLOS ONE, 2017, vol. 12, issue 1, 1-15

Abstract: The agglomeration of innovation determinants has a significant influence on the innovation performance of industries and enterprises. Such an effect has received less attention in empirical research studies. This study involves a survey of the agglomeration effect of two important innovation determinants, R&D investment and R&D personnel, and its influence on innovation performance from the perspective of the industrial level. We analysed the agglomeration features based on the panel data of 23 Chinese industrial sectors from 2001~2013. An interpretation model is proposed to examine the agglomeration effect on innovation performance for 4 industrial groups: state-owned enterprises, individual enterprises, foreign-owned enterprises and enterprises as a whole. We found two main results. First, the agglomeration of determinants has a clear positive effect on the innovation performance of all 4 groups but affects individual enterprises more significantly, followed by state-owned and foreign-owned enterprises. Second, the state-owned enterprises show a much higher concentration of R&D investment and R&D personnel than other groups. However, the induced innovation efficiency in the state-owned enterprises is worse than in the individual enterprises. The advantage of resources and capital does not translate into corresponding innovation output. The privately owned small and medium-sized enterprises (SMEs) show a high capability of technological innovation and mercerization but have limited innovation resources.

Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:plo:pone00:0169473

DOI: 10.1371/journal.pone.0169473

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