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Agglomeration, Structural Embeddedness, and Enterprises’ Innovation Performance: An Empirical Study of Wuhan Biopharmaceutical Industrial Cluster Network

Author

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  • Jingjing Zeng

    (School of Public Administration, Zhongnan University of Economic and Law, Wuhan 430000, China)

  • Dingjie Liu

    (School of Public Administration, Zhongnan University of Economic and Law, Wuhan 430000, China)

  • Hongtao Yi

    (School of Public Administration and Policy, Renmin University of China, Beijing 100872, China
    John Glenn College of Public Affairs, The Ohio State University, 1810 College Rd, Columbus, OH 43221, USA)

Abstract

Industry cluster’s agglomeration effects facilitate higher productivity for enterprises located in the industry cluster. This paper examines the agglomeration effects of industry cluster on firm’s innovation performance through studying the network embeddedness of the biopharmaceutical companies using cross-sectional data from 2011 to 2015. Measuring the technological cooperation network with text analysis of the interfirm agreement among core enterprises, we found that betweenness centrality and clustering coefficient have statistically significant and positive effects on enterprise’s ability for technological innovation, while the influence from the constraint of structural holes is negative. Our results suggest that government should allow the leading enterprises to establish professional technology cooperation platforms and provide additional support to promote cooperation among firms.

Suggested Citation

  • Jingjing Zeng & Dingjie Liu & Hongtao Yi, 2019. "Agglomeration, Structural Embeddedness, and Enterprises’ Innovation Performance: An Empirical Study of Wuhan Biopharmaceutical Industrial Cluster Network," Sustainability, MDPI, vol. 11(14), pages 1-15, July.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:14:p:3922-:d:249530
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    References listed on IDEAS

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    2. Shanshan Liu & Feng Deng & Baosheng Yuan, 2023. "How Does Public Capital Affect Enterprise Technological Innovation Based on Empirical Evidence from Chinese Listed Companies," Sustainability, MDPI, vol. 15(10), pages 1-17, May.
    3. Zhao, Xin & Nakonieczny, Joanna & Jabeen, Fauzia & Shahzad, Umer & Jia, Wenxing, 2022. "Does green innovation induce green total factor productivity? Novel findings from Chinese city level data," Technological Forecasting and Social Change, Elsevier, vol. 185(C).
    4. Ming-Kuen Chen & Shih-Wei Wu & Ya-Ping Huang & Feng-Ju Chang, 2022. "The Key Success Factors for the Operation of SME Cluster Business Ecosystem," Sustainability, MDPI, vol. 14(14), pages 1-14, July.

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