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Small Business Economics
Erschienen in: Small Business Economics 3/2019

06.01.2018

Good neighbors, bad neighbors: local knowledge spillovers, regional institutions and firm performance in China

verfasst von: Shengjun Zhu, Canfei He, Qian Luo

Erschienen in: Small Business Economics | Ausgabe 3/2019

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Abstract

Recent evolutionary economic geography studies have stressed technological relatedness as a key explanatory factor for regional industrial diversification. It is further argued that firms that manufacture products with dense connections to regional industrial structure benefit the most from local knowledge spillovers and thus should grow faster. Based on a firm-level dataset on China’s manufacturing industry over the 1998–2008 period, our results indicate that the density of links between a firm’s products and local industrial structure does yield firm performance enhancing spillovers. We further decompose the overall density indicator and point out the lack of connections between firms of different ownership types in terms of information exchange and technological diffusion. Finally, empirical results confirm that regional institutions play a critical role in the spillover diffusion between firms of different ownership structures.
Vorheriger Artikel Entrepreneurship and industrial clusters: evidence from China industrial census
Nächster Artikel What types of homeowners are more likely to be entrepreneurs? The evidence from China

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Fußnoten
1
The geographical unit of analysis is China’s prefectural level city, which is seen as a region in our empirical investigation. Prefectural level cities are administrative subdivisions of provincial-level divisions. China consists of 333 prefectural level cities.
 
2
lnDensity_all is lnDensityf,i,c,t1 in Equation (4)—the density indicator calculated using Equation (3). lnDensity_SOE, lnDensity_POE and lnDensity_FOE are variants of lnDensity_all, which will be explained later.
 
3
Due to space limitation, only the estimation results for the baseline model are reported here. Other results are available on request.
 
4
Due to space limitation, estimation results for these robustness checks are not reported here, but available on request.
 
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Metadaten
Titel
Good neighbors, bad neighbors: local knowledge spillovers, regional institutions and firm performance in China
verfasst von
Shengjun Zhu
Canfei He
Qian Luo
Publikationsdatum
06.01.2018
Verlag
Springer US
Erschienen in
Small Business Economics / Ausgabe 3/2019
Print ISSN: 0921-898X
Elektronische ISSN: 1573-0913
DOI
https://doi.org/10.1007/s11187-017-9975-2

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