Innovative performance with interactions between technological proximity and geographic proximity: evidence from China electronics patents |
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| Authors: | Jie Liu |
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| Institution: | School of Business, East China University of Science and Technology, Shanghai, People’s Republic of China |
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| Abstract: | A lot of researches have shown that geographic proximity and technological proximity influence firms’ innovative performance. Little work has been done to explore how technological proximity interacts with geographic proximity. Using the theories of recombinant innovation and economic geography, this study develops and tests a theory of how firms’ abilities to reap local benefits and generate innovation are influenced by technological features. Data on technological and geographic proximity of the top 100 firms in China’s electronics industry from 1985 to 2012 are used to test the hypotheses. This study shows that, for a firm with high geographic proximity or located in a dense area of R&D, a low technological proximity in the industry facilitates the process of recombinant innovation. |
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| Keywords: | Innovation studies China technological proximity geographic proximity |
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