Geography of knowledge interactions and innovation in Shenzhen

Recent studies have widely acknowledged that external knowledge sources derived from international collaborations play a pivotal role in driving innovation. Nevertheless, the Chinese government has taken a different approach by initiating an indigenous innovation policy, wherein the emphasis is placed on the synergistic effects of agglomeration and local knowledge bases as drivers of innovation. This study reinterprets the innovative dynamics in Shenzhen within the context of globalized and indigenous innovation policy. The research results show that Shenzhen’s innovation dynamics have been shaped by local agglomeration but more importantly by international interactions. It is worth noting that international sources of products tend to generate higher profit margins. Based on the concept of knowledge bases, this study examines the micro-pattern of knowledge interactions in urban innovative dynamics and results show that the pattern is seen to be an interactional process between local and international knowledge flows, those interactions involve combining scientific knowledge or experience-based knowledge. The finding highlighted that urban innovation benefit from the knowledge interactions and the remarkable complementarity and interrelatedness at different spatial scales. Although there is limited interaction between local and international actors in the innovation process, local firms emphasize the importance of collaborative efforts towards innovation promotion. Thus, measures that ensure cohesive knowledge interaction networks support should be accelerated in the local innovative agents and international innovative agents to connect valuable knowledge sources, hence potentially breaking new paths of indigenous competitive advantage with external knowledge sources.