REGIONS AND INNOVATION: A NEW TALE OF THREE ECONOMIC REGIONS IN CHINA

Megan Yuan Li, Shige Makino, Michael Murphree and Chunyan Jiang
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Megan Yuan Li: Department of Business Administration, Nanjing University of Aeronautics and Astronautics, China
Michael Murphree: #x2021;Darla Moore School of Business, University of South Carolina, United States
Chunyan Jiang: #xA7;Department of Human Resource and Management, Nanjing University, China

International Journal of Innovation Management (ijim), 2021, vol. 25, issue 05, 1-38

Abstract: Learning is a key component of firm upgrading in emerging economies, and China is no exception to this. Studies have identified, among others, two critical mechanisms that facilitate learning: (1) connections with supportive local governments that enhance access to resources or publicly funded knowledge and (2) connections to co-located foreign multinational enterprises (MNEs) that enhance access to advanced knowledge and capabilities. However, previous studies on the effects of these connections on learning and innovation have had contradictory results. In this study, we develop a model of firm innovation capabilities based on regional differences in firms’ dependence on government and MNEs. Using a sample of 715 indigenous firms from the three historically dominant economic regions in China, we find that the effects of government and MNE ties on local firms’ learning and innovation performance vary depending on the historically dominant dependency patterns in the region.

Keywords: Resource dependency theory; regional innovation systems; learning; Chinese economy (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1142/S1363919621500596

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