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

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

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