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Firms' innovation embedded in their networks of collaboration: China compared to the world

Kent Wickstr&#F8;m Jensen and Thomas Sch&#F8;tt

Journal of Chinese Economic and Business Studies, 2014, vol. 12, issue 3, 273-292

Abstract: Purpose : Innovation in a firm is performed in social contexts. Innovation is embedded in a network of relations around the firm, at micro-level, and in society, at macro-level. Innovation benefits from networking, but innovation, networking, and benefit of networking are hypothesized to differ between China and the rest of the world. Method : A fairly representative sample of 24,937 firms around the world, including 706 in China, reported on networking and innovation in Global Entrepreneurship Monitor 2012. These data on firms in many countries are analyzed by hierarchical mixed-linear models. Findings : Networking and innovation are as extensive in China as abroad, and networking benefits innovation considerably, but the benefit in China is significantly less than in the rest of the world. Value : This study seems the first to ascertain benefit of networking for innovation in China compared to elsewhere, using representative sampling so findings generalize to China and the World.

Date: 2014
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DOI: 10.1080/14765284.2014.931427

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