TY - JOUR
T1 - REGIONS and INNOVATION
T2 - A NEW TALE of THREE ECONOMIC REGIONS in CHINA
AU - Li, Megan Yuan
AU - Makino, Shige
AU - Murphree, Michael
AU - Jiang, Chunyan
N1 - Funding Information:
This study was supported by the Fundamental Research Funds for the Central Universities, China (Grant Number: NS2018050); the National Natural Science Foundation of China (Grant Number: 72032002); and the National Social Science Foundation (Grant Number: 18AGL028).
Publisher Copyright:
© 2021 World Scientific Publishing Company.
PY - 2021/6
Y1 - 2021/6
N2 - 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.
AB - 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.
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U2 - 10.1142/S1363919621500596
DO - 10.1142/S1363919621500596
M3 - Article
AN - SCOPUS:85100576786
SN - 1363-9196
VL - 25
JO - International Journal of Innovation Management
JF - International Journal of Innovation Management
IS - 5
M1 - 2150059
ER -