What Drives Regional Innovation Capacity Build-Up in China?
Xiaohua Yang,
Ying Zhou,
Roger (Rongxin) Chen and
Richard Carney
Chapter 6 in Business Practices, Growth and Economic Policy in Emerging Markets, 2020, pp 89-113 from World Scientific Publishing Co. Pte. Ltd.
Abstract:
Building innovation capacity in China is critical to continuing economic development. This study adopts regional innovation system (RIS) and regional innovation capacity (RIC) approaches to investigate the relatively new phenomenon of RIC and identify key factors that explain variations in innovation capacity across regions of China. Our study empirically shows that the key drivers of RIC differ substantively between radical innovation and incremental innovation. Specifically, our findings suggest that innovation capacity is largely related to innovation inputs and these inputs tend to affect incremental innovation more than radical innovation in the context of China. The second finding is a relatively new phenomenon, which we explain using the continuum of CME-LME. Our study contributes to the literature on RIC in a transitional economic context and provides a number of implications for future studies on RIC. The findings also provide significant implications for government policymakers.
Keywords: Emerging Markets; Developing Countries; International Business; Economic Policy; Economic Development; Business Practices (search for similar items in EconPapers)
JEL-codes: F13 F23 F68 M16 (search for similar items in EconPapers)
Date: 2020
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