Research-based vs. production-based innovation in China: regional dimension analysis
by Xiangdong Chen
International Journal of Entrepreneurship and Innovation Management (IJEIM), Vol. 2, No. 2/3, 2002

Abstract: This paper deals with the regional dimension of innovation in the context of the Chinese economy. The paper provides a special research innovation matrix framework namely research-based innovation vs. production-based innovation, and knowledge creation vs. knowledge learning, to include typical innovation activities in developing countries such as China. An empirical study on the geographical dimension of innovation in China is conducted by applying the Principal Component Analysis (PCA) method to 14 innovation measures selected under the research framework, based on statistical data covering 31 sample regions in China. The study reveals that these two innovation settings in China are geographically differentiated and in most cases are significantly distinguished. By further investigating typical external influencing factors, the study concludes that while research-based innovation is largely related to governmental supporting policy, production-based innovation is primarily influenced by Foreign Direct Investment (FDI) in the flows and development of a market mechanism.

Online publication date: Wed, 16-Jul-2003

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