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

Li, J. and Sutherland, D. and Ning, L. and Wang, Y. (2014) 'Firm ownership, industrial structure, and regional innovation performance in China's provinces.', Technology analysis and strategic management., 26 (9). pp. 1001-1022.


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

Item Type:Article
Keywords:Industrial structure, Regional innovation performance, R&D, Specialisation, Diversity, China.
Full text:(AM) Accepted Manuscript
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Publisher statement:This is an Accepted Manuscript of an article published by Taylor & Francis Group in Technology analysis and strategic management on 04/08/2014, available online at:
Record Created:17 Sep 2014 15:05
Last Modified:07 Feb 2016 00:31

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