Global innovation networks for Chinese high-tech small and medium enterprises: the supportive role of highly skilled migrants and returnees

Abstract

Literature investigating highly skilled Chinese migrants has so far focused on their role as drivers of new entrepreneurship as well as innovation in firms and regions, although their role in supporting small and medium enterprises (SMEs) engagement in global innovation networks (GINs) is still underexplored. The participation in GINs is key for high tech SMEs, which rely on sophisticated knowledge but may not have the same absorptive capacity of large firms and multinational corporations. Based on primary data from a case study on 19 SMEs in the IT and new media industry in Beijing, this paper investigates the role of returnees and highly skilled migrants in supporting the engagement of Chinese high-tech SMEs in GINs. The results reveal the important role of those individuals in bringing SMEs in former international knowledge networks and establishing new linkages for sourcing key knowledge.

Global knowledge sourcing in thick and diversified RIS: case studies in Oslo, Malmø and Beijing

“…These networks can now be activated in different ways either physical meets up or virtually in relation to specific thematic issues. Especially important in a Chinese context is the global mobility through migrants and returnees (Lin and Plechero, 2019). This former established social networks from abroad offered the case companies a way to tap into established international knowledge linkages for the acquisition of technology, skill and technical know-how (Lin and Plechero, 2019).…”

“…Most of the Chinese case firms only target regional and domestic market with their innovative products and services, suggesting that global exploitation of products and services is still not an activity as only 10% of the case firms have small portion of business abroad, namely in Southeast Asia, the US and Canada. All companies mainly do R&D within the company or in collaboration with customers and/or suppliers, suggesting that the formal exploration activity is also local or domestic, probably helped well by strong national incentives to help growth of national high-tech industries such as ICT and new media (Lin and Plechero, 2019). Noticeably, although no FDI is directly found in the Chinese case firms, the indirect spillover effect can still be seen in the cases.…”