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Industrial Development Policy and Innovation in Southern China: Government Targets and Firms' Behaviour

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  • Elisa Barbieri
  • Marco R. Di Tommaso
  • Manli Huang

Abstract

The paper investigates the relation between firms' innovation behaviour and the industrial innovation policy promoted by the Guangdong Province Government in the framework of its “Specialized Towns Program”. In this context there are very few academic studies, and non-Chinese scholars are not involved in this debate; moreover, the attempt of self-evaluation of government institutions appears weak (or at least not accessible). In other words, little evidence is offered to check the real response of firms to the government policy apart from that diffused by the government itself. With the support of specific town and firm-level data, we investigate firms' responses to the local governments' innovation policy. In doing so, we suggest a set of relevant variables that should be considered as well as possible ways to measure them. We then run an empirical econometric analysis. The main findings suggest that among the most relevant determinants of a positive attitude towards government policies are the ownership structure, the background of the entrepreneurs in terms of their engagement in government activities and, to a lesser extent, the strength of the policy. We believe that, although these issues find in Guangdong a unique institutional setting, they are relevant not only for Guangdong, but can shed light on more general dynamics of contemporary industry.

Suggested Citation

  • Elisa Barbieri & Marco R. Di Tommaso & Manli Huang, 2009. "Industrial Development Policy and Innovation in Southern China: Government Targets and Firms' Behaviour," European Planning Studies, Taylor & Francis Journals, vol. 18(1), pages 83-105, September.
    • Handle: RePEc:taf:eurpls:v:18:y:2009:i:1:p:83-105
    DOI: 10.1080/09654310903343542
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    References listed on IDEAS

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    1. J. Scott Long & Jeremy Freese, 2006. "Regression Models for Categorical Dependent Variables using Stata, 2nd Edition," Stata Press books, StataCorp LP, edition 2, number long2, March.
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    Cited by:

    1. Peng Wang & Xiaoyan Lin & Dajun Dai, 2017. "Spatiotemporal Agglomeration of Real-Estate Industry in Guangzhou, China," Sustainability, MDPI, vol. 9(8), pages 1-15, August.
    2. Zheng, Guo & Barbieri, Elisa & Di Tommaso, Marco R. & Zhang, Lei, 2016. "Development zones and local economic growth: zooming in on the Chinese case," China Economic Review, Elsevier, vol. 38(C), pages 238-249.
    3. Marco R. Di Tommaso & Elisa Barbieri & Lauretta Rubini, 2012. "The Cantonese model: Clusters of firms and local industrial development policy in Southern China," Working Papers 1212, c.MET-05 - Centro Interuniversitario di Economia Applicata alle Politiche per L'industria, lo Sviluppo locale e l'Internazionalizzazione.
    4. Ying Zhou & Sukanlaya Sawang & Xiaohua Yang, 2016. "Understanding The Regional Innovation Capacity In China After Economic Reforms," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(06), pages 1-36, August.
    5. Longwei Tian & Yuan Li, 2017. "Double-edged sword effect of independent innovations and foreign cooperation: evidence from China," The Journal of Technology Transfer, Springer, vol. 42(6), pages 1276-1291, December.
    6. Claudio Petti & Lauretta Rubini & Silvia Podetti, 2017. "Government Support and R&D Investment Effectiveness in Chinese SMEs: A Complex Relationship," Asian Economic Papers, MIT Press, vol. 16(1), pages 201-226, Winter/Sp.
    7. Yongli Tang & Kazuyuki Motohashi & Xinyue Hu & Angeles Montoro-Sanchez, 2020. "University-industry interaction and product innovation performance of Guangdong manufacturing firms: the roles of regional proximity and research quality of universities," The Journal of Technology Transfer, Springer, vol. 45(2), pages 578-618, April.
    8. Barbieri, Elisa & Di Tommaso, Marco R. & Pollio, Chiara & Rubini, Lauretta, 2020. "Getting the specialization right. Industrialization in Southern China in a sustainable development perspective," World Development, Elsevier, vol. 126(C).

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