Towards a Dynamic Regional Innovation System: Investigation into the Electronics Industry in the Pearl River Delta, China

194 Pages·2015·3.473 MB·English

by  Wenying Fu

Towards a Dynamic Regional Innovation System
Wenying Fu
Towards a Dynamic
Regional Innovation System
Investigation into the Electronics Industry
in the Pearl River Delta, China
1 3
Wenying Fu
School of Geographical Science
South China Normal University
Guangzhou
Guangdong
China
ISBN 978-3-662-45415-2 ISBN 978-3-662-45416-9 (eBook)
DOI 10.1007/978-3-662-45416-9
Library of Congress Control Number: 2014954803
Springer Heidelberg New York Dordrecht London
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Acknowledgement
The completion of this study witnessed my growth as an independent researcher
during my overseas study at Institute of Economic and Cultural Geography, Leibniz
University of Hannover, Germany. As a doctoral dissertation project, the work has
been supported by the German Research Foundation (DFG) under framework of the
Priority Program 1233 “Megacity-Megachallenge: Informal Dynamics of Global
Change”. The financial support it has offered has made the field survey and data
collection possible. In addition, the organization committee of the cooperated proj-
ect has devoted a lot of efforts into organizing regular interdisciplinary workshops
and conferences, as well as supporting my international exchange activities, all of
which have provided me precious opportunities in learning the latest theoretical and
methodological development in the field of innovation studies. In the following-up
studies after the DFG program, acknowledgement should be made to the Project
“Study on industrial cluster restructuring mechanism from the perspective of local
entrepreneurship: Case study in the Pearl River Delta, China” (No. 41301109) sup-
ported by the Natural Science Foundation of China.
I am very much indebted to a great number of persons in the process of the
study. Foremost, I want to say thank you in all sincerity to my supervisor Prof. Dr.
Javier Revilla Diez. He constantly challenged me to refine the theoretical discus-
sions and to explore deeper for the implications of the empirical results. Owing to
his German-style instruction, famous for the tedious training of logical reasoning,
this work has been greatly improved. Javier is very supportive for my career devel-
opment after I graduated, both financially and professionally. I would also like to
acknowledge the co-examiner of the work, Prof. Dr. Ingo Liefner, especially for his
generous knowledge spillover in the workshop discussions.
Special thanks need to go to Dr. Susanne Meyer and PD Dr. Daniel Schiller for
their efforts in making my research and life in Hannover a valuable experience.
Susanne has taken great care of me since the first day I arrived in Germany, and
she has set up a role model for me with her outstanding research outcomes in the
first phase of the Priority Program. Daniel has also devoted a lot of time in read-
ing through my far-from-perfect drafts and giving me very constructive advices to
improve the work. Furthermore, three key members in the “agile firm” research
project under the DFG program, PD Dr. Stefan Hennemann, Dr. Wan-Hsin Liu and
v
vi Acknowledgement
Dr. Stephan Ohm, have played important role in the successful completion of the
survey project, and deserve special acknowledgement for the numerous fruitful and
illuminating discussions that we’ve had together. Without your joint efforts, the
research project would not have been such a success. I would also like to mention
Prof. Lundvall, Prof. Kerndrup, Prof. Keun Lee and Buru Im, who have given use-
ful suggestions for my presentation, as part of the study, in the DRUID Winter and
Summer Conference 2011.
Last but not least, I would like to dedicate this work to my family, who have sup-
ported me unconditionally and always love me just as sure as the stars shine above.
Contents
1 Introduction ................................................................................................ 1
1.1 Research Context ................................................................................ 1
1.2 Defining Innovation and Regional Innovation System
in China Context ................................................................................. 3
1.2.1 W hat does Innovation Imply in China? ................................... 3
1.2.2 W hat does Regional Innovation System Imply in China? ....... 5
1.3 A ims and Research Questions ............................................................. 6
1.4 Outline ................................................................................................. 8
1.5 Survey Data and Evaluation ................................................................ 10
References .................................................................................................... 14
2 Knowledge Spillovers and Regional Innovation: The Case of
Guangdong Province, China ..................................................................... 17
2.1 Introduction ......................................................................................... 17
2.2 T echnological Upgrading and Innovation in Guangdong
Province, China: Some Stylized Facts ................................................ 20
2.3 Impact of Knowledge Spillover on Innovation: An
Integrative Perspective from the Local and the Global Scale ............. 24
2.4 Model Specification and Data ............................................................. 30
2.4.1 Data and Measurements .......................................................... 31
2.4.2 Static and Dynamic Approach for Panel Data ......................... 33
2.4.3 Description of the Data ............................................................ 34
2.5 Empirical Results ................................................................................ 36
2.6 Discussion and Conclusion ................................................................. 39
References .................................................................................................... 41
3 Interactive Learning and Systemic Innovation ....................................... 45
3.1 Introduction ......................................................................................... 45
3.2 Innovation as an Interactive Process ................................................... 47
3.3 Survey Data and Methodology ............................................................ 52
3.4 Empirical Results ................................................................................ 53
3.4.1 Descriptive Results .................................................................. 53
3.4.2 Econometrical Analysis ........................................................... 56
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3.5 Discussion and Conclusion ................................................................. 63
References .................................................................................................... 64
4 Absorptive Capacity, Proximity and Innovation: Linking up
the Intra-Firm Characteristic with Inter-Firm Linkages ...................... 67
4.1 Introduction ......................................................................................... 68
4.2 Use of Proximity in Interactive Learning ............................................ 70
4.2.1 Proximity: Concept and Taxonomy ......................................... 70
4.2.2 Organizational Proximity and Social Proximity:
Comparison and Dynamics ...................................................... 72
4.2.3 Proximity for the SMEs in the Clusters ................................... 79
4.2.4 Brief Summary ........................................................................ 81
4.3 A bsorptive Capacity in the Firm Level as Precondition of
Interactive Learning ............................................................................ 83
4.3.1 Human Capital ......................................................................... 84
4.3.2 R&D Activities ........................................................................ 85
4.3.3 Production Experience ............................................................. 87
4.3.4 Brief Summary ........................................................................ 88
4.4 Operationalization of Analysis ............................................................ 89
4.5 Empirical Evidence ............................................................................. 91
4.5.1 Innovation Behavior of Electronics Firms .............................. 91
4.5.2 Absorptive Capacity and Learning Behaviors ....................... 100
4.5.3 T he SMEs’ Use of Proximity ................................................. 107
4.5.4 Impact of the Use of Proximity on Product
Innovation Outcome .............................................................. 109
4.6 Discussion and Conclusion ............................................................... 115
References .................................................................................................. 117
5 From Globalized Production Systems to Regional Innovation
Systems: Governance and Innovation in Shenzhen and
Dongguan, China...................................................................................... 123
5.1 Introduction ....................................................................................... 123
5.2 Evolutionary Regional Innovation System and Governance
Infrastructure ..................................................................................... 125
5.2.1 Evolution of Governance Infrastructure: Content
and Typology ......................................................................... 125
5.2.2 Evolution of Governance Infrastructure:
Dynamics and Inertia ............................................................. 129
5.3 Survey Design of a Comparative Study ............................................ 131
5.4 Governance in Shenzhen and Dongguan, China: An
Evolutionary Overview ..................................................................... 133
5.4.1 Governance Evolution in Shenzhen Since Opening .............. 133
5.4.2 Governance Evolution in Dongguan Since Opening ............. 136
5.4.3 Summary of Governance in Shenzhen and Dongguan .......... 138
Contents ix
5.5 Descriptive Profile of Innovation Activities in Shenzhen
and Dongguan ................................................................................... 139
5.6 Empirical Evidence for Interactive Innovation ................................. 142
5.7 Discussion and Conclusion ............................................................... 150
References .................................................................................................. 151
6 Conclusions ............................................................................................... 155
6.1 W hat do We Learn About the Chinese Regional
Innovation System? ........................................................................... 155
6.1.1 T he Shaping of Interactive Learning Behavior
and Systemic Innovation ....................................................... 156
6.1.2 T he Informal Aspect of Innovation Activities in China ........ 157
6.1.3 T he Spatial Difference under Divergent Governance
Infrastructure Evolution ......................................................... 159
6.2 Directions of Future Research ........................................................... 160
6.2.1 T he Mechanism of Distributive System
on the Regional Level ............................................................ 160
6.2.2 T he Negative Effect of Informal Guanxi Network
on Innovation ......................................................................... 161
6.2.3 Methodological Issues in the Survey Design ........................ 161
6.3 Policy Implications ............................................................................ 162
6.3.1 Enhancing and Balancing the Firm Absorptive Capacity ...... 163
6.3.2 Identifying and Supporting the Capacity of
Interactive Learning ............................................................... 163
6.3.3 T imely Assessing the Inertia Governance Infrastructure ....... 164
References .................................................................................................. 165
7 Appendices ................................................................................................ 167
7.1 Appendix A: Firm Questionnaire ...................................................... 167
7.2 Appendix B: Test of Clusterin Solution ............................................ 180
7.3 Appendix C: Classifying Product Technology .................................. 181
7.4 Appendix D: Development of Shenzhen Electronics
Industry in 1980s and 1990s .............................................................. 185
List of Abbreviation
AIC Akaike information criteria
BIC Bayesian information criteria
CEO Chief executive officer
CPI Consumer price index
DFG German research foundation
FDI Foreign direct investment
GDP Gross domestic product
GECC Guangdong electronic chamber of commerce
HHI Hirschman-Herfindahl index
LCD Liquid crystal display
MAR Marshall-Arrow-Romer
NPCK New product codified knowledge
NPI New product ideas
NPTK New product tacit knowledge
OECD Organization for economic co-operation and development
ODM Original design manufacturer
OEM Original equipment manufacturer
OBM Original brand manufacturer
OLS Ordinary least squares
PC Personal computer
PPI Production price index
PRD Pearl River Delta
R&D Research and development
RIS Regional innovation system
RMB Renminbi (Chinese currency)
SCPRC State council of the People’s Republic of China
SECC Shenzhen electronic chamber of commerce
SME Small and medium-sized enterprise
TFP Total factor productivity
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