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Subcontracting and Supplier Innovativeness in a Developing Economy: Evidence from China's Information and Communication Technology Industry

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  • Yifei Sun
  • Yu Zhou
  • George C. S. Lin
  • Y. H. Dennis Wei

Abstract

Sun Y., Zhou Y., Lin G. C. S. and Wei Y. H. D. Subcontracting and supplier innovativeness in a developing economy: evidence from China's information and communication technology industry, Regional Studies . This study critically evaluates the relevance of the global value chains theory against the actual practices of subcontracting and technological innovation in China based on a large-scale empirical firm survey in the information and communication technology industry. The results suggest that the impact of subcontracting depends on local suppliers' absorptive capabilities; that the impact of global value chains on local technology upgrading is not linear; and an overdependence on subcontracting for the global market could hurt technological innovation.

Suggested Citation

  • Yifei Sun & Yu Zhou & George C. S. Lin & Y. H. Dennis Wei, 2013. "Subcontracting and Supplier Innovativeness in a Developing Economy: Evidence from China's Information and Communication Technology Industry," Regional Studies, Taylor & Francis Journals, vol. 47(10), pages 1766-1784, November.
    • Handle: RePEc:taf:regstd:v:47:y:2013:i:10:p:1766-1784
    DOI: 10.1080/00343404.2011.632227
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    References listed on IDEAS

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    1. Yasheng Huang, 2005. "Symposium on 'Selling China: Foreign Direct Investment during the Reform Era' - Huang's Response," Management and Organization Review, International Association of Chinese Management Research, vol. 1(2), pages 329-333, July.
    2. Michael Hobday, 1995. "Innovation In East Asia," Books, Edward Elgar Publishing, number 226.
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    Cited by:

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    2. Kroll, Henning, 2015. "Exploring pathways of regional technological development in China through patent analysis," Working Papers "Firms and Region" R1/2015, Fraunhofer Institute for Systems and Innovation Research (ISI).
    3. Ingo Liefner & Sabine Jessberger, 2016. "The use of the analytical hierarchy process as a method of comparing innovation across regions: The examples of the equipment manufacturing industries of Shanghai and Xiamen, China," Environment and Planning A, , vol. 48(6), pages 1188-1208, June.
    4. John Humphrey & Ke Ding & Mai Fujita & Shiro Hioki & Koichiro Kimura, 2018. "Platforms, Innovation and Capability Development in the Chinese Domestic Market," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(3), pages 408-423, July.
    5. Henry Wai-chung Yeung, 2015. "Regional development in the global economy: A dynamic perspective of strategic coupling in global production networks," Regional Science Policy & Practice, Wiley Blackwell, vol. 7(1), pages 1-23, March.
    6. Valentina De Marchi & Elisa Giuliani & Roberta Rabellotti, 2018. "Do Global Value Chains Offer Developing Countries Learning and Innovation Opportunities?," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(3), pages 389-407, July.

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