Academic

 
Below you can find a selection of academic articles related to the concepts of #China and #Innovation.
The articles are categorized by year.
 

 
by Wang, Y.D., Zhou, Z. in International Business Review, volume 22, issue 1, February 2013, pp 63-76
 
Abstract

As strong local knowledge bases emerge in some developing countries and regions, more research efforts are devoted to examine the role of local sites in technological-capability development of firms from developing countries. However, most of these studies illuminate the direct input (e.g., knowledge, human capital) and the role of motivating multinational companies (MNCs) to upgrade their local operations in developing countries so as to perform more innovation activities. Few articles are presented that examine the role of local sites in the learning and technological-capability building processes that take place during technology import activities. This study investigates how local sites in developing countries help their firms benefit from the spillovers of international technology diffusion, by empirically scrutinizing Chinese licensee firms. The empirical results support the hypothesis that Chinese local sites assist with their firms’ technological-capacity building, driven by international technology licensing-in activities, in three indirect ways. That is, the enrollments of sufficient R&D personnel from local sites, the collaborations with local universities and research institutes, and the collaborations with local industrial community firms positively influence the relationship between firms’ international inward technology licensing and technological capabilities.

 
Keywords
China, local site, technological capabilities, technological learning, technology licensing
 

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by Hsu, P.H., Wang, C., and Wu, C. in Journal of Business Research
 
Abstract

One unique feature of the emerging economies in Asia is the rich variation in the development of financial systems and technological sectors across different geographical areas. This unbalanced evolution provides us a potentially more powerful setting to investigate the dynamics among banking systems, innovations, intellectual property (IP) protections, and stock market reactions that are especially useful in understanding the policy–finance–innovation nexus in emerging economies. Using newly available data from China, this study confirms the nurturing role of financial systems on innovations, the value-enhancing function of firms’ innovative activities, and the lead–lag predictive role of innovations on stock returns, in the context of emerging economies. More importantly, the study documents that stronger provincial IP protections reduce patent piracy and hence enhance local firms’ market values.

 
Keywords
banking, China, innovations, intellectual property, patents, piracy
 

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by Jiang, L., Waller, D.S., and S. Cai in Journal of Business Research
 
Abstract

According to the institution-based view, ownership type is a key variable affecting environment-strategy configurations. This study configures the mechanism in which ownership types (as an institutional factor) moderate the effect of innovation strategies on firms’ innovation performance. An empirical analysis was conducted on Chinese hi-tech manufacturing firms, using information related to the innovation activities of 303 firms. The empirical results suggest that ownership type affects the positive relationship between three sources of innovation (internal R&D activities, partnering with alliance partners, and partnering with universities) and innovation performance, as well as the negative relationship between external contracting and innovation performance (product or process innovation). The results imply that organizations doing business in China must be aware of the business environment that they intend to enter, especially if the intention is to develop new products or innovate current business processes.

 
Keywords
knowledge sourcing strategy, ownership type, innovation performance, China
 

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by Liu, F.C., Jiang, B.B., and Y. Sun in Chinese Journal of Management
 
Abstract

Set the technological innovation effect of public RD expenditure as the research objective,this paper proposes a theoretical framework to study the effect of public RD expenditure.Take China’s national innovation system as the sample,a system dynamics model is constructed to explore the relationships between public RD expenditure and technological innovation output,and then the effect of public RD expenditure on technological innovation is simulated and analyzed.Results show that firms’ role as the executive agent of public RD expenditure is enhancing,while the role of public RD institutions is weakening.Adjusting the structure of public RD expenditure is key to fulfill the policy goal of public RD expenditure.

 
Keywords
public R&D expenditure, technology, innovation, system dynamics
 

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by Sha, W.B. in International Business
 
Abstract

This paper examines the effects of absorption capacity of domestic high-tech enterprises on knowledge spillovers of FDI,using panel data of 17 sub-sectors of the high-tech industries in China.We find that absorption capacity of domestic high-tech enterprises which is measured by the RD investment intensity has a non-linear effect on knowledge spillovers of FDI,showing an”U” curve.That is to say there is a threshold in the absorption capacity,and only if the RD investment intensity exceeds the threshold,the domestic high-tech enterprises can absorb the knowledge spillovers of foreign enterprises.Further more,the independent R D investment has been the most important factors of innovation abilities.And the bigger the average sizes of domestic enterprises,the greater the innovation abilities are.

 
Keywords
knowledge spillovers, absorption capacity, innovation abilities, high-tech industries
 

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by Kafouros, M.I. & N. Forsans in Journal of World Business, volume 47, 2012, pages 362-370
 
Abstract

The contribution of this paper lies in explaining why inter-firm variations in the strategic decision to actively seek and acquire external scientific knowledge impact not only financial performance but also the effects of firms’ own R&D. We further demonstrate that the performance implications of using external knowledge and technologies vary considerably depending on their source (domestic or foreign). Knowledge sourcing from domestic organizations has negligible consequences for financial performance and an adverse effect on firms’ own R&D. By contrast, knowledge acquisition from foreign countries results in superior performance and assists firms in unlocking their innovation potential.

 
Keywords
open innovation, knowledge, R&D, emerging markets, India
 

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by Wignaraja, Ganeshan in Journal of Asian Economics, volume 23, issue 3, June 2012, pages 224-233
 
Abstract

This paper undertakes econometric analysis of innovation, learning, and exporting in automobiles and electronics firms in China using a large-scale 2003 dataset to identify the most appropriate innovation proxy. Drawing on recent literature on innovation and learning in developing countries, it tests two alternative proxies: (i) a technology index (TI) to capture a variety of minor activities involved in using imported technologies efficiently; and (ii) the research and development (R&D)-to-sales ratio, which represents formal technological efforts to create new products and processes, often at world frontiers. A higher TI increases the probability of exporting in both industries, while the R&D-to-sales ratio was not significant. Foreign ownership, technical manpower, and the characteristics of the general manager/chief executive officer also matter. The findings suggest that China’s remarkable success in the export of automobiles and electronics since initiating an open-door foreign direct investment (FDI) policy in 1978 is linked to technology transfer from multinationals; systematic investments in and upgrading of minor technological activities (like search, engineering, quality management and design); and human capital. As China’s per capita income rises over time, however, formal R&D activities are likely to become more important to sustain competitiveness and technological upgrading in automobiles and electronics.

 
Keywords
innovation, technological capabilities, R&D, exports, China
 

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by Yang, J.J., Liu, H.F.., Gao, S.X, and Li, Y. in Asia Pacific Journal of Management, volume 29, issue 3, September 2012, pp 819-840
 
Abstract

What do we know about technological innovation of firms in China? What are the directions for future research on this topic? This paper summarizes and discusses some of the newest literature on technological innovation of firms in China in the following three ways: (1) the influence of firms’ external factors, (2) the influence of firms’ internal factors, and (3) interfirm cooperation factors. Based on the analysis of these articles, we propose a framework which highlights these influencing factors, decision-making and implementation of technological innovation and innovation performance, in the context of China’s emerging economy. This framework sheds lights on future innovation research.

 
Keywords
technological innovation strategy, influencing factors, innovation performance, future, framework, China
 

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by Zhu, Y.M., Wittman, X., and M.W. Peng in Asia Pacific Journal of Management, volume 29, issue 4, December 2012, pp 1131-1142
 
Abstract

Despite significant development, small and medium-sized enterprises (SMEs) in China continue to experience institution-based barriers, especially in the area of innovation. What exactly are these barriers? How do these barriers influence innovation? How about the status quo of the institutional environment for SMEs’ innovation and development? We seek to uncover these underexplored areas by developing a model characterized by a cost-risk-opportunity (CRO) innovation triangle. We then enrich this model by interviewing 82 top managers and owners at 41 SMEs. We identify the five key institution-based barriers to innovation in China: (1) competition fairness, (2) access to financing, (3) laws and regulations, (4) tax burden, and (5) support systems. These findings enhance the institution-based view of entrepreneurship by shedding light on how institution-based barriers affect innovation in SMEs.

 
Keywords
small and medium-sized enterprise (SME), innovation, institution, policy, China
 

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by Crescenzi, R., Rodigues-Pose, A., and M. Storper in Journal of Economic Geography, volume 12, issue 5, pp 1055-1085
 
Abstract

This article analyses the geography of innovation in China and India. Using a tailor-made panel database for regions in these two countries, we show that both countries exhibit increasingly strong polarization of innovative capacity in a limited number of urban areas. But the factors behind this polarization and the strong contrasts in innovative capacity between the provinces and states within both countries are quite different. In China, the concentration of innovation is fundamentally driven by agglomeration forces, linked to population, industrial specialization and infrastructure endowment. Innovative areas in China, rather than generate knowledge spillovers, seem to produce strong backwash effects. In India, by contrast, innovation is much more dependent on a combination of good local socioeconomic structures and investment in science and technology. Indian innovation hubs also generate positive knowledge spillovers to other regions.

 
Keywords
innovation, R&D, socio-economic conditions, geography, regions, China, India
 

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by Ru, P., Zhi, Q., Zhang, F., Zhong, X.T., Li, J., and J. Su in Energy Policy, volume 43, April 2012, pages 58-69
 
Abstract

The market scale of China’s wind turbine manufacturing industry has grown immensely. Despite China still having a limited capacity in terms of technology innovation, the institutional support has promoted the technology capability development of the wind turbine manufacturing industry. This paper explores the driving forces underlying this development by reviewing the transition of the innovation modes and the dynamic interactions among the technology capability, innovation modes, market formation, and wind energy policy. The innovation mode in China began with imitative innovation, then transitioned to cooperative innovation, and has more recently set its sights on attaining truly indigenous innovation. Public policy serves as a key driving force for the evolution of innovation modes, as well as the development of the market. The policy focus has evolved in the following sequence: 1. building the foundation for technological innovation; 2. encouraging technology transfer; 3. enhancing local R&D and manufacturing capabilities; 4. enlarging the domestic market; and 5. cultivating an open environment for global competition and sustainable market development in China.

 
Keywords
wind turbine manufacturing industry, innovation mode, transition
 

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by Yang, J. in Journal of Engineering and Technology Management, volume 29, issue 1, January-March 2012, pp 34-46
 
Abstract

This study examines the antecedents of firm innovation capability in high technology firms in China and its effect on long-term corporate growth. It explores the growth-driven core competence of a firm by employing a knowledge-based view. The analysis of firm innovation capability indicates that firm innovation capability is related to long-term corporate growth. The results of this study support this link and the findings stress the importance of innovation intent and infrastructure to a firm’s innovation capability.

 
Keywords
innovation capability, corporate growth, knowledge-based view, dynamic capability approach
 

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by Wang, Y., Vanhaverbeke, W., Roijakkers, N. & J. Chen
 
Abstract

China became the second-largest economy behind the United States in 2010. While there is quite some evidence for the technological catching-up of China on the macroeconomic level, there is only scant evidence on the firm level showing how Chinese firms are catching up. This paper draws on the open innovation perspective to explore how Chinese firms build their technological capabilities. In the empirical part of this paper, we use a sample of 91 native Chinese firms in high-tech industries. The results indicate that Chinese firms widely implement an open innovation approach to develop their technology capabilities. They use: a) technology in-licensing agreements to get access to technologies; b) long-term alliances with foreign partners to access the latest development of technologies; c) collaborations with local universities and R&D institutes to broaden their technology strengths; and d) collaborations with the local industrial community to deepen their existing technology competences.

 
Keywords
open innovation, technological capability, technological licensing, China
 

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by Fu, X. & H. Xion in Journal of Science and Technology Policy in China, vol. 2, no. 3, 2011, pp. 196-218
 
Abstract

The purpose of this paper is to review the evolution of policies and practices of open innovation (OI) in China under globalization.
It is found that Chinese firms have in practice employed a variety of OI models since the reforms of science and technology systems in the mid-1980s. Policies introduced by the Chinese Government with respect to inbound and outbound OI, as well as policies encouraging OI networks, have encouraged Chinese firms to adopt various OI modes and practices. Some critical institutional challenges still need urgent attention and effective efforts to reinforce them.

 
Keywords
China, government policy, organizational innovation, product innovation, open innovation, policies, practices, evolution
 

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by Fang, Eric in Organization Science
 
Abstract

In emerging economies, firms use strategic alliances to access and learn from partners’ knowledge and thus enhance their innovativeness, especially when the partners have complementary knowledge sets. However, differences in cultural and business practices, as well as a lack of trust between local and foreign firms, make it more difficult for both partners to absorb and integrate their complementary knowledge bases. In emerging economies, strategic alliances often are associated with weak legal and regulatory environments that make the integration of complementary knowledge sets challenging. Existing literature lacks a clear explanation of the effect of knowledge complementarity on new product innovativeness; in response, this article examines the moderating role of new product development process characteristics and external environmental factors. Among a sample of high-tech strategic alliances in China, new product development process interdependence and environmental dynamism positively moderate the effect of knowledge complementarity on new product innovativeness, whereas expropriation risks negatively moderate its effect.

 
Keywords
innovation, alliance, knowledge complementarity
 

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by Savitskaya, I., Salmi, P. & M. Torkelli in Journal of Technology Management & Innovation, vol. 5, issue 4, 2010
 
Abstract:

The notion of open innovation suggests that firms can boost their innovative performance by both acquiring knowledge from outside the company and deploying external paths to market for commercialization of non-core technologies. As innovations emerge increasingly from interorganisational cooperation, the background for such cooperation can also have an impact on the involvement of companies into open innovation processes. Thereby this paper proposes to analyze the barriers towards open innovation from three different aspects, such as internal firms’ environment, institutional factors or innovation system and cultural background. Our findings indicate that economic systems and institutions (in particular the protection of IPRs) may have large effects on the behaviour of firms with respect to their engagement in open innovation practices. On the other hand, our results also suggest that the importance of appropriability regime may differ in the buy and sell sides of knowledge, and finally we demonstrate the influence of peculiarities of national cultures upon the adoption of certain elements of open innovation model.

 
Keywords
open innovation, markets for technology, intellectual property rights, organizational culture
 

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by Guan Jiancheng & Chen Kaihua in Technovation, Volume 30, issue 5-6, p. 348-358.
 
Abstract

Analyzing and measuring the innovation process from a quantitative perspective is needed for policy making, which can help in grasping and controlling the performance of innovations. There has been little literature to deal with it from a systemic perspective. In this study, a novel measurement framework for the typical innovation production process (IPP) is constructed from the system perspective associated with a relational network data envelopment analysis. It provides systematic and simultaneous efficiency measures for the overall process and internal sub-processes, i.e., upstream R&D process and downstream commercialization process. For confirming our measurement framework, we apply it to a cross-region empirical study of China’s high-tech innovations. The empirical innovation measurement provides in-depth evidences of China’s high-tech innovations inefficiency, and some policy recommendations are developed.

 
Keywords
innovation production process (IPP), efficiency measurement, china’s high-tech innovations, network data envelopment analysis
 

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by Huang, Kenneth G. in Science, 329, 632-633
 
Abstract:

The People’s Republic of China has experienced three decades of sustained, strong annual economic growth as it transitions from a centrally planned economy to a free market. Currently the world’s second largest economy (1), China recognizes scientific and technological innovation as an increasingly important strategy to fuel the next phase of its productivity growth (2). However, the drivers and trajectories of China’s scientific and technological growth remain underinvestigated. To understand elements of China’s innovative activities, particularly in science and technology, an analysis of comprehensive patent data provided by the State Intellectual Property Office (SIPO) of China is presented here.

 
Keywords
innovation, china, technological innovation
 

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by Li Yuan, Su Zhongfeng and Liu Yi in Technovation, Volume 30, issue 5-6, p. 300-309
 
Abstract:

Although it is generally acknowledged that product innovation is critical for firms to sustain their competitive advantages, innovating firms sometimes fail to obtain economic returns from product innovation. This study focuses on the moderating effect of strategic flexibility (composed of resource flexibility and coordination flexibility) on the relationship between product innovation and firm performance, in order to address an important but previously unexplored question: Can strategic flexibility help firms profit from product innovation? Our empirical test, utilizing a sample of 607 Chinese firms, reveals that the moderating effect of resource flexibility on the positive relationship between product innovation and firm performance is negative, while that of coordination flexibility is positive. Further, such moderating effects are especially likely to be profound for firms confronting a high level of competitive intensity. We conclude by discussing our contributions, the implications, and possible future extensions.

 
Keywords
strategic flexibility, product innovation, competitive intensity, performance
 

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by Lu Jianyong & Tao Zhigang in Journal of Business Venturing, Volume 25, issue 3, p. 261-273
 
Abstract:

The institutional environment – including protection of private properties and contract enforcement – has been rather unfavorable for the emergence and development of China’s private enterprises. This is in sharp contrast to the case of the developed economies where the institutional environment is conductive to the entrepreneurial activities and only the personal attributes of would-be entrepreneurs determine their entrepreneurship decision. We thus propose a theoretical framework for the entrepreneurship decision in China with a focus on the role of the institutional environment. Using a life-histories survey data of 2854 respondents from twenty cities in China, we find strong support for the impacts of the institutional environment and its interactions with other determinants of entrepreneurship decision.

 
Keywords
protection of private properties, contract enforcement, institutional environment, entrepreneurship
 

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by Phan, Philip, Zhou Jing and Eric Abrahamson in Management and Organization Review, Volume 6, issue 2, p. 175-194
 
Abstract:

As the largest and fastest growing transition economy in the world, China’s entrance onto the global stage has been swift and dramatic. As such, almost every facet of entrepreneurship, from the identification of nascent opportunities to the challenges of managing triple-digit growth to the transformation of firms from dying to emerging industries, can be studied as natural experiments. The four papers in this issue are dedicated to exploring entrepreneurial innovation in the Chinese private economy. They include two clinical studies, one on the impact of the Beijing Olympics on entrepreneurship, and the other on the co-evolution of guanxi networks and entrepreneurial growth. Two studies test theories explaining the organizational drivers of innovation and entrepreneurship. In the best traditions, these four studies offer theoretical insights on the broader implications of entrepreneurship research in the Chinese context. We locate the findings offered by these four papers in the systems, organizational and social contexts of creativity, innovation, and entrepreneurship research. Finally, we offer some suggestions for future research and ways in which advances in the theoretical conversation should proceed.

 
Keywords
creativity, entrepreneurship, guanxi, innovation, mega-event
 

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by Sun Yifei & Du Debin in Technovation, Volume 30, Issue 9, pg. 540-550
 
Abstract:

This study examines the sources of technological innovation in Chinese industries using the 2004 economic census data. On the one hand, it analyzes the relationships between patent grants and new product sales. On the other hand, it analyzes the relationships among in-house R&D, technology transfer from foreign and Chinese domestic technology markets, spillover effects of foreign investment, as well as export. The study reveals that in-house R&D has become the most important source for industrial innovation in China. In-house technological efforts are critical for developing original innovations as well as for absorbing the technologies transferred from external agencies. However, neither technologies transferred from foreign countries nor those from the domestic technology market are playing significant roles in China’s industrial innovation. The spillover effect of foreign investment on patent grants is strong and significant, though its impact on new product sales is insignificant. Export shows negative, though insignificant, impact on patent grants, but positive, strong, and significant effects on new product development. Overall, the results of this study demonstrate the critical role of in-house R&D in China’s industrial innovation.

 
Keywords
innovation, in-house R&D, technology transfer, spillover, FDI, China
 

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by Sun Yutao & Liu Fengchao in Technological Forecasting and Social Change, Volume 77, Issue 8, pages 1311-1321
 
Abstract:

Observing the structural transformation of China’s National Innovation System (NIS) since 1999 is useful for understanding the rapid economic growth experienced in China and for adjusting the development strategies of other late-industrializing countries. The following article uses the regional specialization coefficient (RSC) method to analyze the structural transformation of China’s NIS from the perspective of eight large economic regions (8LERs) from 1999 to 2006. The NIS has achieved its initial objectives and two of the three major characteristics of China’s NIS identified in Sun’s (2002) [1] paper have changed since 1999: the funding structure — from a government- to an enterprise-centered model; and the performing structure — from a double-centered model divided into enterprises and research institutions, to one solely led by enterprise. The regional structures of China’s innovation system conform to the macro structure on a national level, while regionally, a wide variety of changing models of RSC affect different locales. The Chinese central government remains the leading force in reforming its innovation system with “Chinese Characteristics”.

 
Keywords
national innovation system, china, structural transformation, 8LERs, RSC
 

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by Tang Jintong. in Asia Pacific Journal of Management, Volume 27, pages 461-479
 
Abstract:

This paper investigates how entrepreneurs in China accumulate and integrate information and knowledge to identify opportunities when facing weak infrastructure and changing institutional settings. By employing institutional theory and an interactive framework of entrepreneurship, this paper proposes a model that incorporates both individual and environmental effects. First the individual characteristics that lead to opportunity recognition are discussed: (1) human capital, (2) social capital, and (3) social skills. Next the model proposes that the relationships between individual characteristics and opportunity recognition are contingent upon: (1) the entrepreneurial environment in which opportunities are discovered, and (2) the personal turbulence experienced by entrepreneurs.

 
Keywords
opportunity recognition, institutional theory, china
 

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by Yang, J.., Liu H., Gao S., and Li, Y. in Asia Pacific Journal of Management
 
Abstract:

What do we know about technological innovation of firms in China? What are the directions for future research on this topic? This paper summarizes and discusses some of the newest literature on technological innovation of firms in China in the following three ways: (1) the influence of firms’ external factors, (2) the influence of firms’ internal factors, and (3) interfirm cooperation factors. Based on the analysis of these articles, we propose a framework which highlights these influencing factors, decision-making and implementation of technological innovation and innovation performance, in the context of China’s emerging economy. This framework sheds lights on future innovation research.

 
Keywords
technological innovation strategy, influencing factors; innovation performance; future; framework; china
 

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by Zeng, S.X., Xie, X.M. and Tam, C.M. in Technovation, volume 30, issue 3, pages 181-194
 
Abstract:

The complexity of innovation processes led to a tremendous growth in the use of external networks by small- and medium-sized enterprises (SMEs). Based on a survey to 137 Chinese manufacturing SMEs, this paper empirically explores the relationships between different cooperation networks and innovation performance of SME using the technique of structural equation modeling (SEM). The study finds that there are significant positive relationships between inter-firm cooperation, cooperation with intermediary institutions, cooperation with research organizations and innovation performance of SMEs, of which inter-firm cooperation has the most significant positive impact on the innovation performance of SMEs. Surprisingly, the result reveals that the linkage and cooperation with government agencies do not demonstrate any significant impact on the innovation performance of SMEs. In addition, these findings confirm that the vertical and horizontal cooperation with customers, suppliers and other firms plays a more distinct role in the innovation process of SMEs than horizontal cooperation with research institutions, universities or colleges, and government agencies.

 
Keywords
innovation, cooperation network, innovation performance, SMEs
 

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by Zhou, Y. & Stembridge, B. in Thomson Reuters World IP Today
 
Abstract:

The 2008 Beijing Olympic Games had, as a stunning backdrop, China, whose meteoric growth hasattracted attention and curiosity from around the world. As the increasing wealth of the population and improved standards of living offer visible signs of the country’s development, major changes have also gone on behind the scenes. China’s economy has shifted focus, moving away from traditional agriculture and manufacturing toward innovation-oriented activities. Since the Chinese economic reform started in 1978, China has emerged from a poor developing country to become the second-largest economy in theworld after the United States. More recently, the Chinese government has encouraged the country to embrace innovation through a variety of measures. It has increased the overall research and development budget for the country,introduced tax breaks and monetary incentives to increase indigenous innovation and continued investing in the nation’s academic institutions, which have become a driving force behind Chinese patenting. In just 20 years after the country’s Patent Law took effect in 1985, China has become the third-largest patent office in the world by annual invention patent applications, after the U.S. and Japan. From 2003 to 2007, China’s GDP grew at an average annual rate of 9.75% while Chinese invention patent applications grew at an average of 34.36% per year. If current trends continue, China is set to dominate the patent information landscape in the not-too-distant future. This report takes a look at current patent trends and speculates about how the world of patent information will look in five years. The driving factors for China’s patent boom are analyzed using data drawn from Thomson Reuters. Patent volumes and trends are explored, as well as the underlying causes of increased innovation in China, including economic and government policy factors.

 
Keywords
innovation, china, innovation performance
 

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by Zhou, K.Z. & Li C.B. in Journal of Business Research, volume 63, pages 224-231
 
Abstract:

Under the fierce pressures of the fast changing environments that characterize emerging economies, firms must develop dynamic capabilities to survive the competition. This study examines how strategic orientation helps build dynamic capability and its contingencies in China’s emerging economy. A survey of 380 firms indicates strategic orientations are important drivers of adaptive capability, a key element of dynamic capabilities. The effectiveness of strategic orientations is contingent on market dynamics. In particular, when market demand becomes increasingly uncertain, customer orientation has a weaker impact, whereas technology orientation has a stronger effect on adaptive capability. As competition intensifies, both competitor and technology orientations build adaptive capability more effectively.

 
Keywords
adaptive capability, china, dynamic capability, emerging economies, strategic orientation
 

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by M.J. Greeven – Doctoral Thesis (ERIM Ph.D. Series Research in Management)
 
Abstract:

The thesis deals with innovation and entrepreneurship in China. Despite an institutional environment characterized by high levels of uncertainty, innovation thrives even in the technology-based sectors. The research asks for explanations how innovative capabilities are developed in such an adverse institutional environment. For analyzing the institutional environment the research relies on comparative institutional approaches while approaches from the capabilities and resource-based theories, innovation management and China studies are used for explaining the behaviour of firms. The thesis is based on 2 years of extensive field research in cooperation with 45 Chinese entrepreneurs and Zhejiang University in Hangzhou. The findings suggest that Chinese entrepreneurs develop particular innovative capabilities in response to particular technical, market and institutional opportunities and constraints. One of the key insights is that innovation, in a broad understanding, can take place in an environment with institutional uncertainty and limited formal protection of intellectual property rights. On the one hand, institutional uncertainty creates both restrictions and incentives for innovation, and, on the other hand, firms are able to develop specific innovative capabilities that manage sectoral constraints while fighting off institutional constraints.

 
Keywords
china, innovation, software, hangzhou, technology, R&D
 

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by The Economist Intelligence Unit
 
Abstract:

Can China become a nation of innovators? Its government hopes so. It has a plan to make China an innovative society by 2020. Increased innovation, it argues, will be vital for China to move up the technological ladder to produce high-value goods and services. Indeed, homegrown innovation could be vital to solve many of China’s challenges, such as energy productivity and pollution, and to position Chinese companies competitively in the global market. The pursuit of these goals is transforming China. No longer just the workshop of the world, the country is also becoming a laboratory, research and development (R&D) centre and consumer market. It stands out as a leading R&D base for work in areas such as stem cell research and nanotechnology. China now publishes more academic papers on nanotechnology than any other country.

 
Keywords
china, innovation, r&d
 

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by Gu, S., Lundvall, B.A., Ju, L., Malerba, F. and Serger, S.S. in Industry & Innovation, volume 16, issue 4, pages 369-388
 
Abstract:

China has been characterised by extremely high rates of economic growth for the last several decades. This growth originates from a transformation of the institutional set up giving more room for regional initiative, private ownership and use of market mechanisms. Regional political resources have been aligned to globally oriented market resources and this alignment has established a very specific and unique mechanism of capital accumulation resulting in extremely high savings and investment rates. The downside of this growth model is its intensive exploitation of human and natural resources. While the rate of capital accumulation is extremely high (40-50% of GNP takes the form of gross savings and investment) non reproducible natural and social capital are suffering in the process of growth. Social and regional inequality has reached critical levels and so have ecological imbalances. The central leadership of China are aware of these problems and recent policy documents put strong emphasis on ‘harmonious development’ and ‘independent innovation’ (Gu and Lundvall 2006). In China the transformation of the national innovation system is now regarded as a major step toward a necessary renewal of the growth model. This paper presents a general framework for the analysis of national innovation system, a historical overview over the development of China’s production and innovation system and ends up with a discussion of the National Medium- and Long-term Science and Technology Development Plan (2006-2020). We conclude that the plan represents steps forward in important respects. This is true for the emphasis on need driven innovation policy with focus on energy and environment, the stronger role for enterprises as hosts of R&D-efforts and innovation, a more active role for public procurement and a more realistic understanding of the limits of science as source of innovation. But the plan has some weaknesses and needs to be complemented with other initiatives. There is exaggerated technology optimism and the need for institutional and organisational change at the level of the enterprise is underestimated. In some cases the policy instruments and tools seem to be inadequate when related to the very ambitious targets set by the plan. Especially problematic is the absence of an explicit analysis of the regional dimension and the need to upgrade working life in terms of skills and organisation. The fact that a knowledge based strategy, if left to itself, leads to further social and regional polarisation is not taken into account. Finally how the idea of ‘indigenous innovation’ will be implemented is crucial both for the success of the plan and for China’s relationships with the rest of the world.; Presented at the GLOBELICS 6th International Conference 2008 22-24 September, Mexico City, Mexico.

 
Keywords
china, innovation, r&d
 

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by Guan, J.C., Yam, R.C.M., Tang, E.P.Y. and Lau, A.K.W. in Research Policy, volume 38, pages 802-812
 
Abstract:

Purpose – To study and evaluate the relevance of innovation strategy to various categories of Chinese companies and the relationship between innovation strategy and the innovation performance of Chinese companies in a particular region.
 
Design/methodology/approach – A review of the literature of technological innovation, innovation strategy, and organizational performance is presented. Reports the results of a study, undertaken in 1996 against the background of China’s economic and organizational transition and geared to preparing the country’s innovation system for the late 1990s and 2000s, which involved the analysis of questionnaire survey data relating to 1,244 companies in Beijing to investigate three major factors relating to company innovation activities (objectives of innovation, innovation strategies, innovation performance).
 
Findings – The results indicated that: innovation activities were still confined to the domestic sphere and were mainly directed to quality improvements and cost reductions for existing products; the existence of a research and development (R&D) department was essential to the facilitation of innovation activities as the innovation performance of companies with R&D departments was better than that of companies without R&D departments; there is a diverse range of strategic profiles in relation to innovation; high-tech companies performed much better than general companies due to support from the Chinese government; smaller companies performed better than bigger companies because the former were more flexible and the latter were less dynamic; and companies oriented to a high level of innovation did not necessarily perform better than others.

 
Keywords
china, product innovation, r&d, technology-led strategy
 

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by Li, X. in Research Policy, volume 38, pages 338-357
 
Abstract:

Purpose – To study the underlying determinants of innovation disparity at the regional level, focusing on the regional variation in innovation performance in China during its transition period.
 
Design/methodology/approach – A review of the literature of cross-country comparisons of innovation performance is presented, focusing particularly on the structures and dynamics of national innovation systems. Discusses the nature of regional innovation systems in China and derives a conceptual framework and econometric model of Chinese innovation and regional differences. Reports the results of analysing Chinese domestic patents according to 30 provincial-level regions in China from 1998 to 2005, with additional data gathered from official statistics published in different statistical yearbooks, including China Statistical Yearbooks, and China Statistical Yearbook on Industrial Economy.
 
Findings – The results indicated that: the estimated results are consistent and robust, no matter whether patent applications or grants are used, and no matter which time-lag is specified; although accumulated knowledge stock represented by per capita gross domestic product (GDP) is more influential than direct research and development (R&D) investment to the production of invention patents, the case is reversed in the production of utility models; the results confirm the importance of interactions or links between the system components, with universities and research institutes playing a favourable role in invention patenting, while companies are inclined to produce utility models; and advanced knowledge providers (universities, research institutes) dominate the creation of the most technologically intensive innovations, while companies prefer to patent marginal innovations.

 
Keywords
china, product innovation, r&d, technology-led strategy, patents
 

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by Liu, F. and Sun, Y. in Technological Forecasting & Social Change, volume 76, pages 797-805
 
Abstract:

In order to enhance the independent innovation capability and help China to become an “innovation-oriented country” this article compares the spatial distribution of innovative activities between China (representing a typical developing country) and the United States. We also provide some recommendations for China and other developing countries to optimize the spatial distribution of their innovative activities. Using invention patents as an indicator gathered from the websites of the CSIPO and the USPTO, this paper compares the spatial distribution of innovative activity in China and the U.S. by methods such as rank-frequency, concentration and classification. The results show that the invention patents have experienced rapid growth and significant fluctuation in recent years in China, while the United States has been relatively stable. The spatial diversity of patent distribution in China is more obvious than in the United States. There is a concentrated trend of innovative activities in both China and the United States from the inland areas to the coastal regions.

 
Keywords
china, innovation capability, spatial distribution, united states
 

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by Perks, H., Khan, K. & Zhang, C. in Journal of Product Innovation Management, volume 26, pages 640-651
 
Abstract:

Purpose – To study the influence of the Chinese concept of guanxi on the integration of research and development (R&D) and marketing in new product development (NPD) in Chinese companies.
 
Design/methodology/approach – A review of the literature of the Chinese cultural concept of guanxi, the drawing on connections between people in order to gain favours in personal relations, and R&D-marketing integration is presented. Reports the results of a questionnaire survey which was sent to senior managers representing marketing and R&D functions in six unnamed Chinese companies, resulting in responses from 100 R&D staff and 100 marketing staff, to gather data relating to R&D-marketing integration, performance, and the culture existing between R&D and marketing departments framed as ‘internal guanxi.
 
Findings – The results indicated that guanxi can unify underdeveloped processes such as NPD, and may reinforce acceptance of formalized structures. Reveals that guanxi is highly utilized to make up for the deficiencies of formal external institutional structures, such as regulatory and legal specifications, and it is suggested that where the basis for guanxi exists, traditional and culturally derived interpersonal relationships still influence strongly the way people work together. Concludes that guanxi may underpin many of the ways that R&D-marketing integration is facilitated in China.

 
Keywords
china, product innovation, r&d
 

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by Su, Y.S., Tsang, E.W.K. & Peng, M.W. in Asia Pacific Journal of Management, volume 26, pages 309-331
 
Abstract:

How do a firm’s internal capabilities and external partnerships contribute to its product and process innovativeness? How do their impacts differ? Based on the theoretical framework of exploitation and exploration, we develop an integrative model linking the impact of both internal capabilities and external partnerships on product and process innovativeness. Survey responses from Taiwanese biotechnology firms indicate that research and development (R&D), marketing, and manufacturing capabilities have different effects on product and process innovativeness. Of the four types of external partnerships, only partnerships with universities and research institutes seem to add value, whereas partnerships with suppliers, customers, and competitors do not contribute to innovativeness. Moreover, marketing capability and customer partnerships have a positive interaction effect on product innovativeness, while manufacturing capability and supplier partnerships have a positive interaction effect on process innovativeness.

 
Keywords
china, product innovation, process innovation, bio-technology industry
 

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by Su, Z., Xie, E., Wang, D., Li, Y. in Small Business Economics
 
Abstract:

This article builds a model to answer a critical but unsolved research question: What are the resources and/or the resourceportfolio firms need to achieve the performance implications of entrepreneurial strategy making (ESM)? Based on a survey of Chinese firms, we find that ESM has a significant positive influence on firm performance. In addition, to accomplish the performance implications of ESM, firms need both flexible employed resources and unabsorbed slack, while just one of them does not work. Thus, a resource portfolio composed of high flexible employed resources and unabsorbed slack is the appropriate one to achieve the value of ESM.

 
Keywords
china, entrepreneurial strategy, innovation
 

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by Greeven, M.J. and Zhao, X.D. in The Network Experience. P.H.M. Vervest, D.W. van Liere and L. Zheng (eds), 193-210. Berlin, Germany: Springer
 
Abstract:

Why are Chinese private entrepreneurs able to develop innovations in China’s transitional economy? This chapter tries to answer this question through a detailed comparative case study of 45 software enterprises in Hangzhou, Zhejiang Province. Combining resourse-based and institutional perspectives we argue that Chinese private enterprises in Hangzhou were able to develop unique innovative capabilities to overcome resourse constraints and manage technical — and marketing risks while respecting the location and sector-specific constraints.

 
Keywords
china, innovation, software industry, hangzhou, knowledge networks
 

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by Li, J. & K. Kozhikode in Asia Pacific Journal of Management, vol. 25, 2008, pp. 429-450
 
Abstract:

The success of latecomer firms from the emerging economies challenges the conventional wisdom on entry timing and resource-based competence. Building on research on institutions in emerging economies and the resource-based perspective in strategic management, we propose a model to explain how resource poor latecomer firms in emerging economies catch up with the multinational incumbents. We classify latecomers based on their strategic learning intent as either emulators or blind imitators. The strategic learning intent depends on a firm’s complementary assets and its absorptive capacity. Firms that choose emulation develop flexible routines, while firms that choose blind imitation end up with rigid routines. Over time, when there is a need for resource renewal, firms that have flexible routines are better positioned to respond. We take the Chinese mobile phone industry as an exemplar to illustrate the core issues in latecomer catching up of emerging economy firms.

 
Keywords
latecomer catching-up, absorptive capacity, complementary assets, strategic renewal
 

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by Hu, M. and Matthews, J.A. in Research Policy, volume 37, issue 9, pages 1465-1479
 
Abstract:

China is transforming itself into the workshop of the world, building an export-oriented national production system linked by global value chains to the world’s leading economies. But to what extent is it laying the foundations for moving from imitation to innovation? In this first study of China’s national innovative capacity, we extend earlier work conducted on the East Asian Tiger economies, and bring it up to the year 2005. We demonstrate a surge in patenting activity by Chinese firms and organizations since 2001, and analyze the drivers behind this, as well as the quality characteristics of the patenting – in terms of intensity, impact and links with the science base. We have some striking findings to report, including the strong role played by universities in the building of China’s national innovative capacity over the last 15 years, and the puzzling apparent lack of contribution of the public sector in reinforcing China’s national innovative capacity. On the latter point we suggest that the role of public sector institutions has been mixed, and only exerts its effects after reforms streamlined the system and brought many of the institutions into the private sector.

 
Keywords
china, national innovative capacity, innovatin performance, patents
 

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by Jin, J. and von Zedtwitz, M. in Technovation, vol. 28, issue 6, pages 327-334
 
Abstract:

The development of technological capability (TC) is critical for manufacturing firms in high-tech industries. Kim’s [1980. Stages of development of industrial technology in a developing country: a model. Research Policy 9, 254–277] model of acquisition, assimilation, and improvement is widely accepted to explain TC development in developing economies. However, some R&D practices we observed in Chinese manufacturing companies appear to be in disagreement with Kim’s model. Based on four in-depth cases studies set in China’s mobile phone industry, we hypothesize (a) a complementary stage in Kim’s model, and (b) those stages can be traversed concurrently.

 
Keywords
technological capability, kim’s model, mobile phone industry, four-stage model, R&D, innovation
 

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by Kroll, H. and Liefner, I. in Technovation, volume 28, issue 5, pages 298-313
 
Abstract:

Purpose – To explore university spin-offs (USOs) as a means of technology commercialization in developing countries.
 
Design/methodology/approach – Overviews the literature regarding university-industry relations in developing or transforming economies, and mechanisms that are available for university knowledge commercialization. Focuses on the USO route. Discusses China’s education system and develops USO commercialization propositions. Tests them by a comparative study of Chinese USO equivalents in Beijing, Wuhan and Hangzhou metropolitan regions i.e. university owned technology enterprises (UOTEs). Gathers data from 82 interviews with key UOTE respondents and from secondary sources e.g. university patent data 1986-2004, and UOTE financial data.
 
Findings – Provides descriptive statistics and discusses similarities and differences in UOTE arrangements in each region, Beijing being the first to have UOTEs. Reports however, that their institutional weaknesses has eroded their promise of technology transfer delivery – and entrepreneurially initiated USOs have been replacing them, albeit at different regional rates. Declares government motivations behind the UOTEs differ substantially from Western USO philosophy.

 
Keywords
china, government policy, sociotechnical change, sociotechnical theory, start-ups, strategy, universities
 

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by Lau, C.M., Yiu, W., Yeung, P.K. and Lu, Y. in Journal of Business Research, volume 61, issue 7, pages 765-777
 
Abstract:

Strategic orientation is a critical factor for a firm’s competitiveness in a transitional economy context but it is understudied in the current literature. This article examines the antecedents of strategic orientation from both the socio-cognitive and resource-based view perspectives. The study posits that the strategic orientations of firms in a transitional economy context are influenced by the top managers’ cognitions and organizational resources. Based on a national survey of high-technology firms in China, the study finds that a stronger market-focused strategic orientation was facilitated by managerial cognitions about the future of the industry and current operation and performance of the firm, as well as organizational resources including an R&D infrastructure, technological alliance, and top managers’ foreign experience. The study confirms that strategic orientations should be examined from multiple theoretical perspectives.

 
Keywords
strategic orientation, high-technology firms, transitional economy, china
 

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by Li, J. and R.K. Kozhikode in Asia Pacific Journal of Management, volume 25, pages 429-250
 
Abstract:

The success of latecomer firms from the emerging economies challenges the conventional wisdom on entry timing and resource-based competence. Building on research on institutions in emerging economies and the resource-based perspective in strategic management, we propose a model to explain how resource poor latecomer firms in emerging economies catch up with the multinational incumbents. We classify latecomers based on their strategic learning intent as either emulators or blind imitators. The strategic learning intent depends on a firm’s complementary assets and its absorptive capacity. Firms that choose emulation develop flexible routines, while firms that choose blind imitation end up with rigid routines. Over time, when there is a need for resource renewal, firms that have flexible routines are better positioned to respond. We take the Chinese mobile phone industry as an exemplar to illustrate the core issues in latecomer catching up of emerging economy firms.

 
Keywords
latecomer catching-up, absorptive capacity, complementary assets, strategic intent, emulation, strategic renewal
 

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by Li, Y., Guo, H., Liu, Y., and Li, M. in Journal of Product Innovation Management, volume 25, pages 63-78
 
Abstract:

Building on the institutional theory, this paper develops a conceptual model of the relationships among CEO incentive mechanisms, firm entrepreneurial orientation, technological turbulence and technology commercialization. We subsequently test empirically this model using a sample of 607 Chinese firms. The empirical results show that, under China’s transitional economy, the CEO ownership has a significant positive effect on entrepreneurial orientation, and CEO turnover frequency has an inverted-U curvilinear impact on entrepreneurial orientation. Furthermore, entrepreneurial orientation positively affects technology commercialization while technological uncertainty moderates this relationship in a positive fashion. We discuss the contribution, managerial implications and future research extensions.

 
Keywords
entrepreneurial orientation, CEO incentive mechanisms, technological turbulence, technology commercialization
 

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by Liu, J.J. & Tylecote A. in Industry and Innovation, volume 16, issue 4-5 (Special Issue: Innovation Systems in China
 
Abstract:

This paper examines how firms’ technological capability development is affected by corporate governance, broadly understood: “how and by whom the firm is directed and controlled”. Three state-owned companies are studied. Shanghai Auto Industry Corporation (SAIC) is a long-established “favoured” enterprise controlled on rather traditional lines. Chery is a small under-funded latecomer that receives exceptional “engagement” from its controlling local and provincial government. Guizhou Tyre (GTC) is long-established but also receives exceptional engagement. The firms’ governance structures and their processes of technological capability building were tracked and compared. Data on SAIC and Chery was mainly from secondary sources; on GTC, from extensive interviewing of management and site observations. There were two main findings: first, it was the two with unusual engagement which were more successful in developing “endogenous” or “self-reliant” technological capability. Second, two alternative technological strategies could be distinguished: “bundled” or “unbundled” technology acquisition. Chery and GTC chose “unbundling”. We show why it was more successful and why it followed from the corporate governance situation.

 
Keywords
technological capability, corporate governance, china, automotive industry
 

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by Siu, W.S. and Bao, Q. in Journal of Product Innovation Management, volume 25, issue1, pages 79-102
 
Abstract:

This article is an investigation of the entrepreneurial network and its strategic implications in a Chinese sociocultural context. It identifies four separate but highly interrelated network dimensions (relationship, governance, structure, and dynamic); it also highlights an important research gap. Entrepreneurs of 12 small Chinese high-technology firms in Beijing and Shenzhen were interviewed. The interview scripts were analyzed by data reduction. Concepts related to entrepreneurial network strategies of small Chinese high-technology firms were gradually condensed. Categorical principal component analysis (CATPCA) in SPSS for Windows 12.0 software was applied to group the cases, which in turn confirmed the qualitative data analysis results. A tentative schema is proposed, illustrating four types of entrepreneurial networkers according to network adaptation and external resource dependence. Network adaptation is based on the differentiation of the entrepreneurial efforts in network construction and change: integrative adaptation, cooperation, and coordination. External resource dependence indicates to what extent the entrepreneur relies on external resources—that is, placing emphasis on using external resources or maintaining a balance between internal and external resources. The reliance on external resources is highly related to two factors: the nature of relationship and the extent of commitment. In a transaction-based, relationship-dominated network, if the entrepreneur decides to develop his or her own resource competitiveness he or she will rely less on external resources. In a collaboration-based, relationship-dominated network, if the entrepreneur tends to have a low commitment to maintaining the relationship, he or she will depend little on external resources. Customer-oriented networkers value interpersonal relations and strive to establish long-term customer relationships. Partnership networkers form strategic alliance with suppliers, manufacturers, and subcontractors to access external resources. Value-oriented networkers have a holistic view of networks and play an active role in network construction and development. Prospecting networkers make a strong commitment to network actors to exploit external resources and to make proactive moves to adapt to environmental changes.

 
Keywords
entrepreneurial network, network strategies, small high-technology firms, china
 

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by Zhou, Y. in New York: Rowman & Littlefield
 
Abstract:

In the 1980s, China faced the monumental task of creating, from scratch, internationally competitive companies. This challenge was especially daunting in the information and communications technology (ICT) sector. The Inside Story of China’s High-Tech Industry describes the emergence and growth of this industry in China through a historically situated analysis of China’s leading science park, Beijing’s Zhongguancun, also known as China’s Silicon Valley. Zhou challenges the prevailing view that foreign multinational corporations and exports are the driving forces for technological progress in less developed countries by arguing that, in the case of China, it is the conjunction of domestic and export markets that has provided the main impetus to technological learning and the development of industry competitiveness. This is the best treatment to date of China’s most important innovation region. It will be useful for scholars and students in the fields of economics, regional sciences, geography, planning, sociology, information technology, and business management, as well as for anyone interested in the rise of China and global technological development.

 

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by Batjargal, B. in Research Policy, volume 36, issue 5, pages 605-618
 
Abstract:

This article examines the interaction effects of social capital and human capital (experience) of entrepreneurs on the performance of Internet ventures. The empirical data are composed of the longitudinal surveys of 94 Internet ventures in Beijing, China. The study found that the interaction of social capital and Western experience of entrepreneurs has a positive effect on the survival likelihood of Internet firms whereas the interaction of social capital and startup experience of entrepreneurs has a negative effect on firm performance.

 
Keywords
social capital, human capital, internet, entrepreneurship, china
 

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by Gao, G.Y., Zhao, K.Z. and Yim, C.K. in International Journal of Research in Marketing, volume 24, pages 3-15
 
Abstract:

This study examines the roles of strategic orientations (i.e., customer, competitor, and technology) in a transitional economy, China. On the basis of a cross-industry sample of 408 brands, we find that the effects of customer and technology orientations on business performance are contingent on the competitive environment. Specifically, as market demand becomes increasingly uncertain, the effect of a customer orientation on performance turns from positive to negative. Meanwhile, the impact of a technology orientation on performance changes from negative to positive with an increasing level of technological turbulence. However, a competitor orientation has a positive and robust effect on business performance, regardless of whether competition is low or intense.

 
Keywords
business performance, china, competitive environment, strategic orientation
 

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by Li, H. and Zhang Y. in Strategic Management Journal, volume 28, pages 791-804
 
Abstract:

Drawing upon the resource-based view and transaction cost economics, this study aims to examine how various types of managerial resources (i.e., political networking and functional experience) can be beneficial to new ventures in a transition economy. Using survey data from a sample of new ventures in China’s high-technology industries, we demonstrate that managers’ political networking and functional experience are positively related to new venture performance. We also find that the positive relationship between functional experience and new venture performance is moderated by the type of ownership of the ventures and the level of dysfunctional competition in their environments. Theoretical and managerial implications are discussed.

 
Keywords
political networking, functional experience, new venture, transition economy
 

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by Liu, X. and Buck, T. in Research Policy, volume 36, pages 355-366
 
Abstract:

– To examine Chinese high-tech industries regarding innovation performance (IP) and international technology spillover (ITS) effects.
 
Design/methodology/approach – Overviews the related literature on factors affecting national innovative capacity in developing a framework for investigation that extends Furman et al.’s (2002) domestic model to accommodate innovation influence of ITS via imported technologies, R&D by multinationals (about 700 R&D centres in China by 2004), and learning-by-exporting/importing. Develops related hypotheses and a linear domestic IP function dependent on ITS, domestic R&D, absorptive capacity, capital intensity, firm size, and time/industry dummies. Uses 1997-2002 data from the Chinese State Statistical Bureau in three regression approaches: OLS with fixed effects; GMM; and GMM with absorptive capacity introduced. Employs new product sales/employee as an innovative capacity measure (rather than patents), R&D intensity, capital intensity, share of scientists/technicians in a workforce, firm size, and expenditure on imported technology as main variables.
 
Findings – Concludes, inter alia, that ITS importance depends on indigenous firms’ infrastructure – firms having high absorptive capacity or high numbers of scientists/technicians benefiting more. Finds export/import related channels contribute positively to IP implying learning-by-importing/exporting, and importing advanced technologies also contributes.

 
Keywords
china, r&d, technology-led strategy
 

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by Motohashi, K. and Yun X. in Research Policy, volume 36, pages 1251-1260
 
Abstract:

In this paper, linkages of S&T activities between industry and science are statistically investigated, based on a firm level dataset from an S&T survey by the National Bureau of Statistics (NBS) of the PRC of about 22,000 manufacturing firms. During the transition period of China’s innovation system from 1996 to 2002, firms’ S&T outsourcing activities increased significantly. Econometrics analysis reveals that (1) “absorptive capacity” for S&T outsourcing becomes important over time, (2) innovation system reforms for more market-based competition work for better incentive scheme for innovation though S&T linkage activities and (3) government funding of S&T induces more S&T linkages.

 
Keywords
china, national innovation system, science industry linkage
 

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by OECD in OECD Science & Informaiton Technology, volume 11, pages 1-68
 

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by Walsh, K.A. in Asia Pacific Business Review, Volume 13, issue 3, pages 321-335
 
Abstract:

This study highlights the rapid pace at which new commercial research and development (R&D) centres are being established by foreign investors in the People’s Republic of China (PRC). It recounts the motivations behind this growing trend, subtle changes in this trend over time, some lessons learned, and asks what it could mean for future Asia-Pacific relations. The essay emphasizes China’s distinct role in attracting R&D through its extensive investment in municipal services, infrastructure and regulatory reforms as well as policy incentives that have helped to spur ever-greater levels of foreign R&D investment over the past decade.

 
Keywords
china, offshoring, r&d, technology
 

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by Zhou, K.Z. and Li, C.B. in Asia Pacific Journal of Management, Volume 224, pages 447-466
 
Abstract:

As China continues to transition toward a market economy, how strategic orientation affects firm performance has received significant attention. This article reviews the extant literature with a framework that depicts contemporary work on strategic orientation, the drivers of strategic orientation, and its boundary conditions. We identify important research gaps and propose to integrate institutional theory,dynamic capability perspective, and the knowledge-based view within the strategic orientation research stream for future investigations.

 
Keywords
china, strategic orientation, emerging economy
 

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by Li, Y., Liu, Y. and Zhao Y.B. in Industrial Marketing Management, volume 35, pages 336-347
 
Abstract:

Reports on how an entrepreneurship orientation helps firms to take personal control and to improve NPD activities; considers that entrepreneurship orientation and market orientation have a different association with the degree of improvement in a firm’s NPD; highlights how entrepreneurship orientation is significantly and positively related to improvement of NPD in the Chinese transitional economy; puts forward how entrepreneurship-oriented firms will select personal control to manage NPD activities.

 
Keywords
china, corporate Strategy, marketing management, new products, product development, product innovation
 

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by Tan, J. in Journal of Business Venturing, volume 21, pages 827-850
 
Abstract:

The success of technology parks in promoting technology transfer and attracting clusters of highly innovative firms has motivated countries from around the world in an attempt to promote regional development, including the People’s Republic of China. Due to its similarities with other formerly planned economies undergoing transition towards market economies, the Chinese model of technology parks has been closely watched and emulated by other transitional economies.
 
However, despite its economic significance, such development has been largely ignored in organizational research. In this study, I investigate a specific example of an industry cluster in China, the Beijing Zhongguancun (ZGC) Science Park, which has seen the largest cluster of semiconductor, computer, and telecommunication firms in China, consisting of both domestic and foreign invested firms. I examine the origin and growth of industry cluster in a traditionally heavily regulated economy and region, its role in promoting technology transfer and innovation, and challenges firms face in the future. I close by proposing some issues for future research.

 
Keywords
china, innovation, regional development, science parks
 

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by World Bank
 

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by Chen, G., Liu, C. and Tjosvold, D. in Journal of Management Studies, volume 42, pages 277-300
 
Abstract:

Top management teams may be critical for developing organizations that can keep abreast of marketplace changes and innovate. Several streams of strategy research have argued that conflict and diversity promote top management team effectiveness. This study proposes that how top management teams manage conflict can greatly contribute to their effective leadership of organizational innovation. A total of 378 executives from 105 organizations in China completed measures of conflict management (cooperative, competitive, and avoiding) and productive conflict (an outcome of conflict). Separately, 105 CEOs from these firms indicated their team’s effectiveness and their organization’s innovativeness. Results support the theory that conflict management can contribute to making top management teams effective. Structural equation analysis suggests that cooperative conflict management promotes productive conflict and top management team effectiveness that in turn result in organizational innovation. These results, coupled with previous research, were interpreted as suggesting that cooperative conflict management is an important contributor to effective top management teams even in the collectivist culture of China.

 
Keywords
china, innovation, top management
 

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by Chen, G., Liu, C. and Tjosvold, D. in Technology Analysis & Strategic Management, volume 17, issue 3, 339-353
 
Abstract:

Most R&D resources in China were allocated to public research institutes/universities until the economic transition of the mid 1990s. To maximize the return from these resources, it is important to have a healthy collaboration between industry and research institutes/universities on industrial innovation. This paper examines that relationship and discusses some empirical evidence on its efficiency with particular reference to industry in Beijing. Following a survey of 950 industrial enterprises, the influences of the collaboration relationship on industrial innovation were analyzed. The main findings indicate that the technology novelty of industrial innovation is positively related to that relationship, i.e. the more the collaboration, the higher the technology novelty of the innovation. However, the collaboration relationship is less efficient in terms of economic performance indicators such as innovation sales and profit ratios, to measure innovation. Moreover, the collaboration relationship is still far from efficient in stimulating industrial innovation in China. The major barriers to successful collaboration have also been addressed in this paper with the aim of devising policies and suggesting possible improvements to collaboration efficiency.

 
Keywords
china, co-operative organizations, innovation, manufacturing, r&d, universities
 

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by Li, H., Zhang, Y. and Chan, T.S. in Journal of High Technology Management Research, volume 16, pages 37-57
 
Abstract:

In this study we examine the contingency value of entrepreneurial strategy making with a sample of technology-based new ventures in China’s emerging economy. Our results show that the relationship between entrepreneurial strategy making and performance is moderated by both environmental factors and firm competencies. Specifically, entrepreneurial strategy making has a positive relationship with performance when the environment is highly uncertain and when the firm has strong marketing competences.

 
Keywords
environment, firm competencies, firm performance, new technology ventures
 

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by Mu, Q. and Lee, K. in Research Policy, volume 34, pages 759-783
 
Abstract:

Attributes a low switchgear technological evolutionary trajectory, China’s government trading market access for technology transfer, and China having a segmented domestic market and low labour costs (enabling non-FDI firms to sell simple digital switch technology locally) as main reasons why China bypassed the analogue switch stage in its latecomer catch-up here.

 
Keywords
china, government policy, product development, r&d, strategy
 

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by Tan, J. in Journal of Business Venturing, volume 20, pages 689-704
 
Abstract:

In this study, a staged model is developed to examine the changes in organizational environment and firm strategic adaptations in the last 24 years in China. The study found that compared with 1990, in 2002, the business environment in China has become more conducive to entrepreneurial activities, and managers in state-owned enterprises (SOEs) have reacted favorably with more willingness to commit to future growth and make more innovative and risk-oriented decisions. It is also found that since 1990 newly founded firms have exhibited rather distinctively strategic orientations, compared to their counterparts from the pre-1990 era. They are far more innovative and risk oriented. Research and policy implications are discussed.

 
Keywords
china, economic reform, strategic adaptations, innovation
 

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by White, S., Gao, J. and Zhang, W. in Research Policy, volume 34, pages 894-913
 
Abstract:

China’s system for funding new ventures is a relatively recent phenomenon emerging from decades of government-led technology policy and a still-transitioning business system. This paper first proposes a general framework in which this financing system is defined as the country-specific configuration of actors, rules and practices by which investment funds are pooled, investment targets identified, funds invested and monitored, and returns appropriated. The paper uses this framework to link the centralized government system of the 1980s to today’s nascent venture capital industry. The analysis leads to policy and managerial implications, as well as a research agenda for further studies in the Chinese context and across different venture financing systems.

 
Keywords
venture capital, china, innovation, new venture finance, transition economy
 

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by Wu, J. and Callahan, J. in Research Policy, volume 16, pages 173-191
 
Abstract:

This article adds to the research literature on international R&D alliances by focusing on alliances formed by multinational corporations with Chinese organizations. Using publicly available information, we developed a sample of 80 international R&D alliances between multinational corporations and Chinese organizations in the information technology industry in China formed during the period from 1997 to 2003. We use these data to test hypotheses on the connections between the declared motives, organizational form and R&D activity function of such alliances. Our analysis shows that the two most frequent motives of multinational corporations when establishing R&D alliances with Chinese organizations are establishing vertical linkages and obtaining human resources. Within the context of a strong preference for non-equity-based cooperative agreements, our analysis also provides some evidence for an association between the choice of form and motive, strong evidence for an association between function and motive, and strong evidence for an association between the form and function.

 
Keywords
r&d alliances, multinationals, chinese IT industry
 

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by Wright, M., Filatotchev, I., Hoskisson, R.E.E. and Peng, M.W. in Journal of Management Studies, 42(1): 1-33
 
Abstract:

This review and introduction to the Special Issue on ‘Strategy Research in Emerging Economies’ considers the nature of theoretical contributions thus far on strategy in emerging economies. We classify the research through four strategic options: (1) firms from developed economies entering emerging economies; (2) domestic firms competing within emerging economies; (3) firms from emerging economies entering other emerging economies; and (4) firms from emerging economies entering developed economies. Among the four perspectives examined (institutional theory, transaction cost theory, resource-based theory, and agency theory), the most dominant seems to be institutional theory. Most existing studies that make a contribution blend institutional theory with one of the other three perspectives, including seven out of the eight papers included in this Special Issue. We suggest a future research agenda based around the four strategies and four theoretical perspectives. Given the relative emphasis of research so far on the first and second strategic options, we believe that there is growing scope for research that addresses the third and fourth.

 
Keywords
china, emerging economies, innovation
 

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by Chang, P.L. and Shih, H.Y. in Technovation, volume 24, pages 529-539
 
Abstract:

This paper presents an analytical framework to compare two distinguishing innovation systems. For recognizing the structural characteristics of innovation systems, six major functions of generic types of institutions involved in the systems are examined: policy formulation, performing R&D, financing R&D, promotion of human resource development, technology bridging, and promotion of technological entrepreneurship. Not only does it describe the role and performance of particular institutions, but this framework also explores four major interactions among these institutions for illustrating the dynamics and efficiency of innovation systems, that is, R&D collaboration, informal interaction, technology diffusion, and personnel mobility.
 
The framework is applied to compare the innovation systems of Taiwan and China, revealing that they both have unique characteristics, while also sharing numerous complementary features. In addition, the two economies have the linguistic, cultural, racial and historical similarities, plus their geographical proximity. Consequently, these phenomena suggest the possibility of future cooperation between the two innovation systems, and then this paper proposes possible approaches to achieving cooperation for the two sides.

 
Keywords
innovation system, taiwan, china, institution, research and development, science and technology, cooperation
 

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by Cheung, K.Y. and Lin, P. in China Economic Review, volume 15, pages 25-44
 
Abstract:

Foreign direct investment (FDI) can benefit innovation activity in the host country via spillover channels such as reverse engineering, skilled labor turnovers, demonstration effects, and supplier–customer relationships. Using provincial data from 1995 to 2000, we find positive effects of FDI on the number of domestic patent applications in China. This finding is robust under both pooled time-series and cross-section data estimation and panel data analysis and for different types of patent applications (invention, utility model, and external design). The spillover effect is the strongest for minor innovation such as external design patent, highlighting a “demonstration effect” of FDI.

 
Keywords
FDI, spillover, patent, spatial effect
 

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by Lyles, M.A., Saxton, T. and Watson, K. in Journal of Management, volume 30, pages 351-375
 
Abstract:

Many formerly controlled economies have undergone discontinuous transformations in their approach to markets, institutional environments, and the role of government in economic activity. We study the factors that affect venture survival in a transitional economy through a two-stage study of private ventures in Hungary. We find that ventures survive under uncertainty, even without significant government support. Industry experience, networking activities, and the strategic orientation of the firms predict survival. Contrary to our predictions, SOE experience, access to infrastructure, and differentiation strategies do not significantly differentiate survivors.

 

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by VON ZEDTWITZ, M. in R&D Management, volume 34, pages 439-452
 
Abstract:

This paper focuses on the management of R&D units established by foreign companies in China, investigating R&D missions, site build-up, integration with the parent organization, and overall performance measurement. The research is based on 37 qualitative expert interviews with local R&D directors and managers conducted between 2001 and 2004, using a semi-structured research questionnaire, and semi-quantitative research done on 199 foreign R&D labs in China. Cultural influences on R&D management, location advantages, expatriate involvement, and organizational evolution of local laboratories are discussed. We find that foreign R&D laboratories in China are not only important vehicles for local market development but also increasingly important sources of locally developed technology.

 
Keywords
r&d, china, innovation, foreign r&d labs, foreign companies, multinationals
 

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by Yam, R.C.M., Guan, J.C., Pun, K.F and Tang, E.P.Y. in Research Policy, volume 33, issue 8, pages 1123-1140
 
Abstract:

Recent studies have advocated different technological innovation capabilities (TICs) and discussed their impact on a firm’s competitive performance. This paper introduces a study framework of innovation audit and examines the relevance of seven TICs to building and sustaining the competitiveness of Chinese firms. Empirical data was acquired through a recent study of 213 Chinese firms in Beijing, China. Regression analysis was employed to examine the correlation between TICs and innovation rate, sales growth, and product competitiveness among these firms. The findings verify that R&D and resources allocation capabilities are the two most important TICs. A strong R&D capability could safeguard innovation rate and product competitiveness in large and medium-sized firms, whereas a resources allocation capability would enhance the sales growth in small firms. However, the impact of learning and organising capabilities on a firm’s innovation performance has yet to be investigated.
 
The findings of this paper suggest that Chinese firms should consider a more balanced focus on their TICs’ harmonising enhancement. In order to maintain their sustainable development, effectively plan and implement their innovation strategies as well as enhance their whole innovation capability, Chinese firms should closely relate their TICs to the formulation of technology strategy and harmonisation of innovation and R&D activities.

 
Keywords
innovation audit, technological innovation capability, chinese firms
 

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by Calantone, R., Garcia, R. and Droge, C. in Journal of Product Innovation Management, volume 20, pages 90–103
 
Abstract:

Managers need guidance on how to cope with turbulent environments in order to improve corporate performance. Research on environmental turbulence has suggested that firms adopt a less centralized, more organic structure in dynamic, uncertain environments. Little work has been done specifically, however, on how environmental turbulence affects strategy planning for new product development (NPD). In this article, we specify a baseline model with firm innovativeness, market orientation and top management risk taking as antecedents to NPD speed and corporate strategic planning; these in turn are modeled as antecedents to NPD program (not project) performance. Two conceptualizations of the role of environmental turbulence are examined: (1) that market turbulence and technological turbulence are additional direct antecedents to NPD program performance; and (2) that the baseline model is moderated by turbulence (that is, that the strengths of the paths differ depending on levels of turbulence). A cross-sectional survey methodology including four diverse industries [automotive, electronics, publishing, and manufacturing/research and development (R&D) laboratories] was used to test the hypotheses. The latter conceptualization is supported. In particular, the paths from innovativeness to strategic planning and from risk taking to NPD speed are significantly greater in highly turbulent environments. A set of managerial recommendations and implications are provided. First, managers must recognize the possible improvements in new product performance by actively including NPD personnel in corporate strategic planning and also by involving corporate planners in NPD activities. Second, managers also should recognize that turbulent environments heighten the need to make risky investments, and sometimes, risky decisions; risk-taking decisions ought to be encouraged in such environments.

 
Keywords
innovation, new product development, environmental turbulence, china
 

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by Roth, K. and Kostova, T. in Journal of World Business, volume 38, pages 314-330
 
Abstract:

The radical change in corporate governance systems is fundamental to the period of institutional upheaval characterizing transition economies. Using an institutional theory framework, this paper develops a model of responses to this change. The model is tested with data from 1,723 firms in 22 countries in Central and Eastern Europe and the Newly Independent States. The results suggest that a firm’s adaptation to the new governance order will be facilitated or hampered depending on the characteristics of the institutional and organizational contexts it faces. A major implication of the study is the need to consider cultural and contextual embeddedness in explaining how governance systems transform.

 

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by Zhou, Y. and Xin, T. in Economic Geography, volume 79, pages 129-152
 
Abstract:

The literature on innovative regions has stressed the role of spatial clustering in the endogenous formation, accumulation, and sharing of knowledge in technology hubs in advanced countries. Little has been written, however, on how spatial clusters may also affect technological dynamics in developing countries where external actors, such as multinational corporations (MNCs), are the main source of new technology. Drawing on studies of innovative regions and technology transfers, we analyzed the interactive patterns between MNCs and local technology actors in China’s leading information communication technology (ICT) service cluster in Zhongguancun, Beijing. We found that the relationship between MNCs and local firms is hierarchical, but also interdependent and evolutionary. Local firms‘ collaboration with MNCs provides them with vital technological and organizational training, which the local firms use strategically to develop their market networks and innovative capacity in the home market. The learning capacity of local firms is vastly improved by the presence of other related enterprises, the research and development facilities, and a developmental state in a market-oriented spatial cluster.

 
Keywords
innovative region, spatial cluster, information technology sector, china, multinational corporations
 

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by Lau, C.M., Lu, Y., Makino, S, Chen, X. and Yeh, R. in The Management of Enterprises in the People’s Republic of China. A.S. Tsui and C. Lau (eds), 183– 210. Dordrecht: Kluwer.
 
Abstract:

Based on an analysis of six high-tech firms in mainland China, this chapter examines knowledge management issues by focusing on its acquisition, dissemination, and commercialization. We found that most firms emphasized knowledge acquisition. SOE-based firms relied more on their parents for early key technologies, confirming that institutional support and social capital are influential in knowledge acquisition. Social capital also help firms to overcome barriers to organizational knowledge dissemination. Its role in knowledge commercialization is also identified. Absorptive capacity is important for knowledge dissemination, since appropriate organizational arrangements have not been purposely designed.

 

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by Li, H. and Atuahene-Gima, K. in Strategic Management Journal, volume 23, 469-490
 
Abstract:

This study examines the roles of firm characteristics and environmental factors in the formation of interfirm alliances. Specifically, we examine the dual role of these groups of factors as inducements and opportunities for Chinese high-technology new ventures (HTNVs) in their adoption of agency business activity, a downstream type of alliance involving marketing and distributionof the products of foreignfirms. Resultssuggest that bothinternaland external factors are related to the adoption of agency business activity but the inducement and opportunity value of environmental uncertainty may be dampened by institutional support provided to HTNVs. Further, we find that successful agency business activity is positively related to new venture performance but negatively related to its product innovation efforts. Theoretical and managerial implications are discussed.

 
Keywords
agency business activity, product innovation, new technology ventures, china
 

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by Sun, Y. in Environment and Planning A, volume 34, pages 1059-1072
 
Abstract:

The author investigates the innovative behavior of large and medium-sized manufacturing enterprises in China. It is revealed that in-house research and development (R&D) efforts, rather than imported technologies, are the primary sources of industrial innovation in China. Regarding in-house R&D efforts, it is found that in-house R&D laboratories are important sources for the creation of new products as measured by patents, though it is enterprise-wide R&D spending rather than the mere presence of in-house facilities that is more likely to lead to market success. Concerning importation of technologies, it is revealed that the limited nature of efforts to absorb imported technologies has become a serious barrier to fulfilling the potential of these technologies and to upgrading China’s internal creative capabilities. In addition, domestic technology markets have not been effectively linked to large and medium-sized industrial enterprises, despite China’s enduring efforts in this direction since the middle 1980s. It is therefore concluded that the organization of R&D activities in China’s industrial enterprises is still fragmented, with only weak linkages between technology importation and assimilation, between industrial R&D and domestic technology markets, and between business and R&D activities within enterprises.

 

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by Tan, J. in Journal of Management Studies, volume 39, pages 333-354
 
Abstract:

In this study I contend that the ownership type has a significant impact on the environment–strategy configurations amongst different firms in a transitional economy. The influence of ownership type on the environment–strategy configuration is tested, based on an analysis of surveys of 201 managers from four types of companies in China: state-owned, collectively-owned, privately-owned, and foreign joint ventures. Results support the central notion that each ownership type exhibits a distinct environment–strategy configuration, which in turn has important performance implications for the firms.

 

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by Li, H. and Atuahene-Gima, K. in Academy of Management Journal, volume 44, issue 6, pages 1123-1134
 
Abstract:

Investigating the effect of product innovation strategy on the performance of new technology ventures in China, we found the innovation-performance link was contingent on both environmental factors, including environmental turbulence and institutional support, and the relationship-based strategies of the ventures, such as strategic alliances for product development and political networking. Our results suggest the need for simultaneous consideration of environment- and relationship-based strategy factors as moderators in the discourse on product innovation strategy among new technology ventures.

 
Keywords
new producs, technological innovation, china, joint ventures
 

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by Lu, Q. and Lazonick, W in Research Policy, volume 30, pages 55-77
 
Abstract:

The national innovation system that emerged in China in the 1990s integrates government science and technology efforts, typically through the intermediation of public research institutes, with the business activities of industrial enterprises. In illustrating the institutional and organizational characteristics of this innovation system, the case study of Founder Group, world leader in pictographic-language electronic publishing systems, demonstrates both the strategic role of the state in the process of change and the increasing importance for economic success of the integration of investment strategy and organizational learning in industrial enteprises that compete for domestic and global markets.

 
Keywords
china, transition, science and technology, innovation system, electronics
 

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by Liu, X. and White, S. in Research Policy, volume 30, pages 1091-1114
 
Abstract:

This paper proposes a generic framework for analyzing innovation systems, anchored around five fundamental activities — R&D, implementation, end-use, education, linkage — and focused on the performance implications of a system’s structure and dynamics. Rather than simply describing the role and performance of particular actors, institutions and policies, this approach focuses on system-level characteristics, including the distribution of these activities within the system, the organizational boundaries around them, coordination mechanisms, evolutionary processes, and the effectiveness of the system in introducing, diffusing and exploiting technological innovations. The framework is applied to a comparison of China’s national innovation system under central planning and since reforms, revealing the evolving structure and dynamics of this system and current inconsistencies and perverse incentives that policymakers must address to realize their development goals. More generally, it provides a basis for addressing the implicit assumptions of organizational types, roles and convergence among innovation systems emerging in very different contexts, whether national, regional or industrial

 
Keywords
innovation system, fundamental activities, system-level characteristics
 

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by Tan, J. in Journal of Business Venturing, volume 16, issue4, pages 359–376
 
Abstract:

This research was set in the People’s Republic of China. As former socialist China moves from central planning toward a more market-driven economy, improved knowledge about the new environment and firm decisions within such an environment has significant implications. For organizational researchers, such a transition represents a genuine shift of paradigm, and thus offers a unique opportunity to test existing organizational theories and develop new ones. For multinational businesses seeking business opportunities, they have to compete or cooperate with these Chinese firms, whether state-owned or privately owned.
 
Motivated by a deep curiosity in, using the language of Williamson (1996), “What is going on there” behind the “bamboo curtain,” and underpinned by a strong conviction that organizational researchers have much to gain as well as to offer by focusing on transitional economies, I undertook this study to examine characteristics of a regulatory environment and the impact on innovation and risk-taking among Chinese managers and entrepreneurs. I collected original primary data that represents managers from large state-owned enterprises (SOEs) and entrepreneurs from small privately-owned enterprises (POEs) through personal interviews and a survey. Significant differences were found between managers and entrepreneurs in their reported environmental characteristics, strategic orientations, size, and firm performance, indicating that managers are not as innovative and are less willing to make risky decisions than entrepreneurs. Being smaller and faster than SOEs, entrepreneurial firms have adopted some strategies that distinguish them from their larger and more established competitors. Speed, stealth, and sound execution allow entrepreneurs to harvest first-mover advantages and thus increase their chances for survival in a turbulent environment.

 

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by Lu, Q. in Oxford University Press
 
Abstract:

This book takes an inside look at the development of four large Chinese domestic computer enterprises from their inception to their establishment as multi-billion dollar businesses. It shows how and why indigenous Chinese high-tech firms gained technology capabilities and modern marketing know-how, and how they were able to compete directly with Western multinationals.

 

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