Innovation, Network Capabilities, and Sustainable Development of Regional Economies in China

Abstract

This paper studies the relationships between network capabilities and innovation development in the context of two types of innovation networks: scientific knowledge networks (SKN) and technological knowledge networks (TKN). Focusing on two types of network capabilities, namely acquisition capability and control capability, the paper uses spatial regime models to compare the impacts of multiple factors on different spatial regimes. The main conclusions are the following. First, as regards SKN, the political-administrative hierarchy has shaped the spatial evolution of acquisition capacity, forming a pattern consisting of three dominant cities (Beijing, Shanghai, Nanjing), three subsidiary cities (Guangzhou, Hangzhou, Wuhan), and multiple lesser centers (Tianjin, Chengdu, Xi'an). Moreover, high control capability cities are mainly clustered in the coastal areas, specifically, one monocentric city (Beijing) and two polycentric metropolises (Shanghai, Wuhan). Second, for TKN, cities with high acquisition and control also are mainly found in coastal areas, with Shanghai and Beijing dominating network capabilities. The model's analysis confirms the positive effect of network capabilities on innovation development, especially in scientific knowledge networks, and the driver for regional innovation development appears to have shifted from global pipeline (globalization) to local buzz (localized talents). This paper concludes with suggestions regarding network capabilities' potential to reduce regional inequality and achieve sustainable development of regional economies. Sustainability 2019, 11, 4770 2 of 21With the deepening of the globalization process, economic activities undertaken by multinational corporations began to integrate talents, information, technology, and other production factors on a global scale [2]. Innovation achievements spread around the world, influencing global production networks and other world economic patterns [3,4]. With respect to global cooperation, a network society characterized by "spaces of flows" has emerged [5]. Moreover, network related theories, such as the global production network and the world city network, attempt to explain the new regional development patterns.Characterized by knowledge spillover, a regional innovation network is formed by long-term formal or informal cooperation and interaction between innovative subjects such as enterprises, universities and research institutes, local governments, and intermediary service agencies [6,7]. The "spillover" of new knowledge and innovations from such networks is a vital force in regional development [8-10]. Regional innovation networks provide access to diverse forms of knowledge, technology, and information; and network capabilities are about using these assets effectively [11,12]. In other words, network capabilities comprise the ability to acquire external resources and manage multiple relationships competently [13]. Also, network capabilities may reduce regional inequality and play a significant role in creating competitive ad...

Hegemony of Network Capabilities, Frugal Innovation and Innovation Strategies: The Innovation Performance Perspective

“…However, NC of owner/managers had been ignored by the existing researchers for the improvement of IP of SMEs. Due to the changing environment, it is critical for owner/managers of SMEs to establish networks for the maximum utilization of resources [8]. Therefore, the aim of this study was to focus on the NC of owner/managers of SMEs and the effect of these networks on IP.…”

“…In recent years, environmental turbulence and economic instability greatly influenced the business processes, strategies and innovation efforts in both developing and developed economies [8]. In developing and emerging economies in particular, restricting resources and facilities compelled commercial landscapes to rethink their innovation strategies, among which, the notion of FI has emerged and gained the wider attention of researchers and practitioners [11][12][13].…”

Understanding the Complexity of Regional Innovation Capacity Dynamics in China: From the Perspective of Hidden Markov Model

“…First, there is no one-size-fits-all solution to improve RIC for all regions; the findings defined three states of the RIC, thus providing guidelines to policymakers in identifying the state of RIC under their jurisdiction. It also would be wise for policymakers to subdivide innovation policies with full consideration of the disparity in RIC across different regions [68,69]. Second, the results provide a comprehensive understanding regarding the heterogeneous effects of the determinants in each scenario of RIC transitions, thus offering a roadmap for designing policies based on the current state of region and goals set for RIC development and innovation sustainability.…”

Identification of Transformation Stages and Evolution of Agricultural Development Types Based on Total Factor Productivity Analysis: A Case Study of Gansu Province, China

“…In addition, the government should increase rural human capital investment, establish an agricultural human resource development and training system that suits the actual national conditions. Furthermore, the government improve the quality of farmers, and cultivate entrepreneurial farmers and new types of farmers [19,52].…”