Regions and Innovation: A New Tale of Three Economic Regions in China
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AbstractThe regional and individual effects of connections with foreign MNCs and the local government on the innovation performance of firms are a crucial factor in understanding the patterns of innovation and firm performance in transition economies. However, few studies have simultaneously considered the effects of these types of connections on innovation at the firm level. In this study, we develop a new framework for examining the regional economic systems in transition economies based on local firms’ connections with the local government and foreign MNCs. We examine how the connections to the local government and foreign enterprises affect the learning of local firms across regions characterized by different levels of dependency. Using a sample of 715 indigenous firms from the three major economic regions in China, we find that both government and MNC ties have unique associations with local firms’ learning and innovation performance depending on the levels of dependency in their region. Our study contributes to the literature on regional innovation systems by providing a framework for examining how systematic regional economic differences influence how firms’ connections to government actors and foreign MNCs affect their learning and innovation.
Acceptance Date28/02/2018
All Author(s) ListMurphree Michael, Li Yuan, Makino Shige
Name of ConferenceAcademy of International Business Annual Conference
Start Date of Conference25/06/2018
End Date of Conference28/06/2018
Place of ConferenceMinneapolis
Country/Region of ConferenceUnited States of America
LanguagesEnglish-United States
KeywordsGovernment ties, foreign MNC ties, regional innovation systems, learning, transition economies

Last updated on 2018-03-07 at 16:27