Knowledge base, technology gap and technology development speed in technological catch-up: innovation choice for China's knowledge-intensive enterprises (KIEs)

Abstract

PurposeWith the fierce competition in a knowledge economy, knowledge-intensive enterprises (KIEs) make technological progress in their catching-up processes through implementing product innovation and process innovation. In this study, the aim is to understand the determinants of enterprise innovation type in China's catch-up environment. Further, this paper intends to deal with two related questions. First, what effect does the internal knowledge base have on KIEs' technology innovation activities? Second, considering the technology gap and technology development speed, what are the different impacts of the knowledge base on the type of technology innovation activities?Design/methodology/approachThis paper collected data from 212 KIEs in China through a two-stage questionnaire survey, combined with statistical data for research. The hypothesis was tested by regression analysis. Specifically, descriptive statistics and regression analysis are introduced to test the hypothetical relationship between the knowledge base and technology innovation. Meanwhile, multiple regression is used to test whether there is any difference in the influence of technology gap and technology development speed on enterprise knowledge base and technology innovation. Finally, the corresponding robustness tests are done.FindingsThis study finds that in a sample of Yangtze River Delta KIEs, firms' knowledge base influences innovation types. Specifically, the knowledge base width (KBW) and knowledge base depth (KBD) positively influence process innovation, and KBD positively affects product innovation. Regarding the effects of catch-up context factors on KIEs’ innovation choice, a wide technology gap tends to positively influence product innovation in industries with high levels of KBW. Moreover, when technology development speed is high, its potential positive influence on process innovation will be more significant for industries with deeper knowledge bases.Originality/valueThis paper fills the research gap that existing studies ignore the relationship between types of technology innovation and knowledge base dimensions, especially for KIEs. First, this paper deepens the understanding of the impact mechanism of KIEs' existing knowledge base on innovation activities; the unique use of resources by enterprises is the basis of enterprises' competitive advantage and will become enterprises' competitive advantage. Second, this study indicates that against different backdrops of technology gap and technology development speed, enterprises with different knowledge bases will adopt different types of technology innovation activities. Third, this paper shows that a wider technology gap provides broader innovation space, so the technology gap plays a pulling role in KBW and product innovation, thus pushing forward enterprises' technological catch-up.

Global minds, local impact: Exploring the effect of foreign directors on corporate R&D expenditure

“…In such an environment, foreign directors may find it easier to comprehend and advocate for R&D investment in innovative activities due to their deeper understanding of global technological trends and best practices. Conversely, in non-high-tech industries, these factors might be relatively weaker, and firms may prioritize stable production and market share over long-term innovation investments (Zhang et al, 2021). Consequently, we anticipate that the role of foreign directors in R&D expenditure may not be as prominent in non-high-tech industries as in high-tech industries.…”

“…We classified the samples into high-tech and nonhigh-tech industries based on the "Classification Catalogue of High-tech Industries" released by the National Bureau of Statistics of China. Typically, high-tech industries are more knowledgeintensive, relying on highly specialized technical and scientific knowledge (Zhang et al, 2021). Moreover, these industries often face intense global competition, resulting in a more urgent demand for innovation (Liu et al, 2014;Rađenović et al, 2023).…”