The innovation networks shaped by large innovative enterprises in urban China

Abstract

Studies investigating innovation networks shaped by large innovative enterprises (LI-ENTs), which play a very important role in intercity diffusion of technology and knowledge, are rather thin on the ground. Using location information of LI-ENTs in China, we performed a headquarter-branch analysis to generate intercity innovation linkages and analyzed the patterns and dynamics of the generated network of knowledge diffusion. Although the network covers 353 cities across China, its spatial distribution is extremely uneven, with a few cities and city-dyads dominating the structure of the network. Furthermore, intercity linkages of innovation within and of urban agglomerations, as well as their central cities, stand out. With regard to network dynamics, the economic development level, innovation ability, and administrative level of cities, as well as the geographical, institutional, and technological proximity between cities are all found to have a positive impact on intercity linkages of innovations, whilst the impact of FDI on the national distribution of Chinese innovative enterprises is negative. Most importantly, the status of cities within the urban agglomeration exerts a significant positive effect in relation to the innovative enterprises’ expansions, which reflects that the top-down forces of government and the bottom-up forces of market function together.