Inward FDI spillovers and innovation capabilities in Chinese business: exploring the moderating role of local industrial externalities

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

doi:10.1080/09537325.2016.1259472

Inward FDI spillovers and innovation capabilities in Chinese business: exploring the moderating role of local industrial externalities

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

Authors

J. Li

Professor Dylan Sutherland dylan.sutherland@durham.ac.uk
Professor

L Ning

Abstract

It is generally believed foreign direct investment (FDI) has spillover effects which can affect the innovation capabilities of local firms in host countries. Comparatively little, however, is known about the contingent local contextual factors that influence how these FDI spillovers can be captured. Integrating the literature on FDI knowledge spillovers with that on inter- and intra-industrial externalities, we explore how local industrial agglomeration moderates the effect of FDI knowledge spillovers on innovation in the emerging market context of China. Empirical estimates, based on panel data of 1610 listed indigenous Chinese firms recorded between 2000 and 2010, indicate that such spillovers are more easily captured in industrially diverse settings. By contrast, industrial specialisation negatively moderates this relationship. Theoretical and practical implications are discussed.

Citation

Li, J., Sutherland, D., & Ning, L. (2016). Inward FDI spillovers and innovation capabilities in Chinese business: exploring the moderating role of local industrial externalities. Technology Analysis and Strategic Management, 29(8), 932-945. https://doi.org/10.1080/09537325.2016.1259472

Journal Article Type	Article
Acceptance Date	Nov 8, 2016
Online Publication Date	Nov 30, 2016
Publication Date	Nov 30, 2016
Deposit Date	Nov 11, 2016
Publicly Available Date	May 30, 2018
Journal	Technology Analysis and Strategic Management
Print ISSN	0953-7325
Electronic ISSN	1465-3990
Publisher	Taylor and Francis Group
Peer Reviewed	Peer Reviewed
Volume	29
Issue	8
Pages	932-945
DOI	https://doi.org/10.1080/09537325.2016.1259472
Public URL	https://durham-repository.worktribe.com/output/1393464

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Copyright Statement
This is an Accepted Manuscript of an article published by Taylor & Francis Group in Technology Analysis & Strategic Management on 30/11/2016, available online at: http://www.tandfonline.com/10.1080/09537325.2016.1259472.