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How Does the Concentration of Determinants Affect Industrial Innovation Performance? – An Empirical Analysis of 23 Chinese Industrial Sectors

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  • Shansong Huang
  • Yang Bai
  • Qingmei Tan

Abstract

The agglomeration of innovation determinants has a significant influence on the innovation performance of industries and enterprises. Such an effect has received less attention in empirical research studies. This study involves a survey of the agglomeration effect of two important innovation determinants, R&D investment and R&D personnel, and its influence on innovation performance from the perspective of the industrial level. We analysed the agglomeration features based on the panel data of 23 Chinese industrial sectors from 2001~2013. An interpretation model is proposed to examine the agglomeration effect on innovation performance for 4 industrial groups: state-owned enterprises, individual enterprises, foreign-owned enterprises and enterprises as a whole. We found two main results. First, the agglomeration of determinants has a clear positive effect on the innovation performance of all 4 groups but affects individual enterprises more significantly, followed by state-owned and foreign-owned enterprises. Second, the state-owned enterprises show a much higher concentration of R&D investment and R&D personnel than other groups. However, the induced innovation efficiency in the state-owned enterprises is worse than in the individual enterprises. The advantage of resources and capital does not translate into corresponding innovation output. The privately owned small and medium-sized enterprises (SMEs) show a high capability of technological innovation and mercerization but have limited innovation resources.

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  • Shansong Huang & Yang Bai & Qingmei Tan, 2017. "How Does the Concentration of Determinants Affect Industrial Innovation Performance? – An Empirical Analysis of 23 Chinese Industrial Sectors," PLOS ONE, Public Library of Science, vol. 12(1), pages 1-15, January.
    • Handle: RePEc:plo:pone00:0169473
    DOI: 10.1371/journal.pone.0169473
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    1. Zhujia Yin & Lijuan Liu & Haidong Wang & Fengming Wen, 2018. "Study on the ownership balance and the efficiency of mixed ownership enterprises from the perspective of heterogeneous shareholders," PLOS ONE, Public Library of Science, vol. 13(4), pages 1-15, April.
    2. Haihua Liu & Peng Wang & Zejun Li, 2021. "Is There Any Difference in the Impact of Digital Transformation on the Quantity and Efficiency of Enterprise Technological Innovation? Taking China’s Agricultural Listed Companies as an Example," Sustainability, MDPI, vol. 13(23), pages 1-19, November.
    3. Mingwen Chen & RongJia Chen & Shiyong Zheng & Biqing Li, 2023. "Green Investment, Technological Progress, and Green Industrial Development: Implications for Sustainable Development," Sustainability, MDPI, vol. 15(4), pages 1-12, February.
    4. Fenfen Wei & Nanping Feng & Kevin H. Zhang, 2017. "Innovation Capability and Innovation Talents: Evidence from China Based on a Quantile Regression Approach," Sustainability, MDPI, vol. 9(7), pages 1-15, July.

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