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Firm ownership, industrial structure, and regional innovation performance in China's provinces

Li, J.; Sutherland, D.; Ning, L.; Wang, Y.

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Authors

J. Li

L. Ning

Y. Wang



Abstract

This paper uses panel data between 2000 and 2010 to explore how firm ownership and regional industrial structures contribute to regional innovation performance in Chinese provinces. Specifically, we explore how the extent of specialisation and diversification in regional industrial structures at the province level fosters both Marshall–Arrow–Romer and Jacobs spillovers, as well as how foreign and state ownership influence regional innovation. We find: (i) China's regional innovation systems benefit from Jacobs but not MAR externalities, with the former spurring higher quality innovation in the form of increased invention patenting; (ii) state-owned enterprises and foreign-invested enterprises advance local innovation, with the latter again fostering higher quality innovation; and (iii) a convergence towards a combination of low specialisation and high diversity in provincial industrial structure is taking place between China's more developed inland coastal provinces and less developed inland provinces. Implications and suggestions for policy-making and future research are discussed.

Citation

Li, J., Sutherland, D., Ning, L., & Wang, Y. (2014). Firm ownership, industrial structure, and regional innovation performance in China's provinces. Technology Analysis and Strategic Management, 26(9), 1001-1022. https://doi.org/10.1080/09537325.2014.943714

Journal Article Type Article
Publication Date Aug 4, 2014
Deposit Date Sep 16, 2014
Publicly Available Date Sep 17, 2014
Journal Technology Analysis and Strategic Management
Print ISSN 0953-7325
Electronic ISSN 1465-3990
Publisher Taylor and Francis Group
Peer Reviewed Peer Reviewed
Volume 26
Issue 9
Pages 1001-1022
DOI https://doi.org/10.1080/09537325.2014.943714
Keywords Industrial structure, Regional innovation performance, R&D, Specialisation, Diversity, China.
Public URL https://durham-repository.worktribe.com/output/1420883

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