[LIU Zhigao, ZHANG Wei.
The process and dynamics of high-tech industrial branching in China's metropolitan areas: A case study of biotechnology industry in Wuhan[J]. Geographical Research
The process and dynamics of high-tech industrial branching in China's metropolitan areas: A case study of biotechnology industry in Wuhan
LIU Zhigao1,2,, ZHANG Wei3
1. Key Laboratory of Regional Sustainable Development Modeling, Institute of Geographic Sciences and Natural Resources Research, CAS, Beijing 100101, China
2. School of Natural Resources and Environment, University of Chinese Academy of Sciences, Beijing 100049, China
3. Zhejiang Development Planning Research Institute, Hangzhou 310012
The recent development of evolutionary economic geography, particularly of "regional branching", has provided both theoretical perspective and methodological tools for our understanding of the formation of new industries and the branching of existing industrial structures. The existing research on "regional branching" originated in western and developed countries has been putting "technology relatedness" at the core, focusing on the relationship between emerging industries and local established technologies. It is necessary to examine the applicability of analysis framework to China experiencing marketization and globalization. Based on the core concepts of evolutionary economic geography, combining with other approaches from other economic geographies and industrial economics, this article strongly argues that special attention should be given to the impacts of higher level political, economic and technological factors on regional branching in China's metropolitan areas. This article insists that the emergence and evolution of China's high-tech industry is the combined result of the local and global forces, the historical conditions and concentrated efforts, and technological innovation and institutional changes. And it builds a multi-scale and multi-factor dynamic analysis framework for our understanding of high-tech industrial branching in China's metropolitan areas. This article examines the processes and driving elements of the emergence of new industries in the contexts of transitional and globalizing China, taking the emergence of the biotechnology industry of Wuhan as a case, with an aim to understand the processes and dynamics of high-tech industry in the Chinese metropolitan areas. The methods used in this article include case studies, field research, in-depth interviews, spatial analysis and statistical data analysis. The main research outputs include: the technological relatedness, the universities and research institutes and enterprises are of much importance to the emergence of Wuhan biotechnology industry, local governments, multinationals, and overseas returnees, are also important factors, which are different from those in developed countries where new technology producing institutions are regarded as being critical to industrial branching. To a large extent, high-tech industry development in China is currently still on the factor-intensive and quantity-driven path, rather than an innovation-based one.
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Tanner AN.Regional Branching Reconsidered: Emergence of the fuel cell industry in European regions. , 2014, 90(4): 403-427.
The literature on economic geography suffers from a lack of attention to the emergence of new industries. Recent literature on “regional branching” proposes that new industries emerge in regions where preexisting economic activities are technologically related to the emerging industry. This article provides a more grounded basis for the emerging literature on regional branching by confronting the regional branching thesis with the realities of an emerging industry, namely, the fuel cell industry. The analysis is based on patent data and qualitative interviews conducted in a selection of European NUTS2 (nomenclature of territorial units for statistics) regions. The findings can be summarized as follows. First, the analysis reveals that in the case of the emerging fuel cell industry, regional diversification is dominated by firm diversification, which complements previous studies’ findings that entrepreneurial spin-offs dominate regional diversification. Second, the study corroborates the assumption that the process of regional branching relies on knowledge generated by nonindustrial actors such as universities and research institutes. Third, the findings suggest that care should be taken in ascribing the underlying logic of regional branching to the principle of technological relatedness alone. The article shows how some regional diversification processes occur in regions where preexisting economic activities are not technologically related to the emerging industry, for instance, when user industries apply new technologies to their product portfolio. The importance of further investigating and disentangling different dimensions of relatedness and their impact on regional branching is stressed.
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This note studies the mechanisms through which regional economies diversify over time and formulates suggestions on how policy can influence such process. In particular, two closely related concepts will be defined, that is, technological relatedness and related variety. Regional diversification is a crucial process in order to develop new growth paths. It is understood as an emerging process through which new activities develop out of existing ones, but the scope and outcome of this process are fundamentally affected by technological and cognitive constraints. We discuss how technological relatedness may provide an input for effective policy making. In this respect, public policy should avoid picking winners that do not fit into the regional actual and potential industrial space and should prevent supporting declining industries that occupy a peripheral position in the industry space of a region. More in particular, we direct attention to various mechanisms through which new industries may be stimulated to connect to technologically related industries at the regional level. We also introduce the process of entrepreneurial discovery, in which entrepreneurs generate the key information guiding the selection of the domains of future regional specialization, and discuss its relationship with policy schemes based on related diversification.
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Optical science is the study of light and the ways in which light interacts with matter. Although its origins coincide with the earliest scientific inquiry, modern optics is an enabling technology that is applied to a variety of intermediate markets telecommunication equipment, medical devices, scientific instruments, semiconductors, imaging and reproduction, defense and security, and retail logistics. One difficulty in studying emerging technology is the limitation of current industrial categories and patent classes. This article examines the geography of optical science inventions using a new methodology that can be applied to study other emerging industries. We rely on companies that self-identify as working on optics on the basis of their voluntary membership in the Optics Society of America. We investigate the inventive activity of these companies from 2004 to 2007 and identify a set of International Patent Classes that defines the emergent technology space in optical science. Using this definition, we then analyze all the organizations that are inventing in optical science. We find that inventive activity is geographically concentrated: patenting takes place in 240 urban areas, although 84 percent of the patents were invented in 30 metropolitan areas and almost 50 percent were attributed to 11 metropolitan areas. The article considers the organizations that are shaping the emerging technology and the consequences for geographic clusters. Our results reveal that the geographic distribution of inventive activity does not reflect the location of self-designated regional optics clusters in the United States but suggests a more nuanced understanding of the emergence of industries. We conclude by considering lessons about the development of clusters in emerging industries.
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Theorizing within evolutionary economic geography on regional branching of industries has so far been depicted as evolving through routine replication among different economic actors that hold various degrees of relatedness. Methodologically, related variety and unrelated variety have been studied quantitatively, treating relatedness between economic agents as pre-defined industrial classifications. This represents a need for a complementary qualitative and in-depth understanding of how knowledge is re-combined in various settings. Based on a qualitative case study in the publishing industry, whose technological platforms and business models are currently facing severe challenges associated with digitization, this paper seeks to improve our understanding of how knowledge is re-combined and re-applied in various ways. The paper explores and discusses how this industry branches out into new activities, and reflects upon the channels through which these processes unfold. How is the old and the new in the economy bridged? How is the relationship between specialization and diversification played out? In this sense, the paper seeks to contribute to improving our understanding of the epistemic micro-foundations for regional branching and economic development.
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Martin R. and Sunley P. Towards a developmental turn in evolutionary economic geography?, Regional Studies. Over the past couple of decades or so there have been increasing moves within evolutionary theory to move beyond the neo-Darwinian principles of variety, selection and retention, and to incorporate development. This has led to a richer palette of concepts, mechanisms and models of evolution and change, such as plasticity, robustness, evolvability, emergence, niche construction and self-organization, This opens up a different framework for understanding evolution. This paper sets out the main characteristics of the recent and ongoing ‘developmental turn’ in evolutionary theory and suggests how these might inform a corresponding ‘developmental turn’ in evolutionary economic geography.
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What does the economic in economic geography stand for? For much of the 1990s up to the more recent past, answers to this pertinent question frequently referred to the embeddedness-network paradigm of the new economic sociology. At the same time, economic geography more and more drew inspiration, metaphors, and practices from an increasingly diverse range of schools. In terms of the disciplinary orientation, economic geography, on the one hand, remains firmly engaged with sociology, although interest seems to expand from the Granovetterian paradigm to the poststructuralism of Latour and Callon. On the other hand, economic geography's interest in heterodox economic geography is gaining new momentum. Above all, evolutionary approaches have attracted considerable attention that most recently culminated in a range of programmatic statements to develop a distinct evolutionary economic geography. It is these attempts to develop a collective agenda that Danny MacKinnon, Andrew Cumbers, Andy Pike, Kean Birch, and Robert McMaster take issue with. Subsequently, Ron Boschma and Koen Frenken, J rgen Essletzbichler, and Geoffrey Hodgson comment on this "sympathetic critique." A rejoinder by Andy Pike and his coauthors concludes this symposium.
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Frenken K., Van Oort F. and Verburg T. (2007) Related variety, unrelated variety and regional economic growth, Regional Studies 41, 685–697. In economic theory, one can distinguish between variety as a source of regional knowledge spillovers, called Jacobs externalities, and variety as a portfolio protecting a region from external shocks. It is argued that Jacobs externalities are best measured by related variety (within sectors), while the portfolio argument is better captured by unrelated variety (between sectors). A methodology based on entropy measures is introduced to compute related variety and unrelated variety. Using data at the NUTS 3 level in the Netherlands for 1996–2002, it was found that Jacobs externalities enhance employment growth, while unrelated variety dampens unemployment growth. Productivity growth can be explained by traditional determinants including investments and research and development expenditures. Implications for regional policy follow. Frenken K., Van Oort F. et Verburg T. (2007) La variété connexe, la variété sans rapport et la croissance économique régionale., Regional Studies 41, 685–697. Dans la théorie économique, on peut distinguer entre la variété comme la source des retombées de connaissance régionales, dites les effets externes de Jacob, et la variété comme un portefeuille qui protège la région des chocs externes. On affirme que l'on peut mieux mesurer les effets externes de Jacob à partir de la notion de variété connexe (au sein des secteurs), tandis que l'argument qui pr00ne plut00t la notion de portefeuille est mieux saisi par la notion de variété sans rapport (entre les secteurs). On présente une méthodologie fondée sur des mesures d'entropie afin d'estimer la variété connexe et la variété sans rapport. A partir des données au niveau NUTS 3 auprès des Pays-Bas pour la période de 1996 à 2002, on trouve que les effets externes de Jacob augmentent la croissance de l'emploi, alors que la variété sans rapport atténue la croissance du ch00mage. La croissance de la productivité s'explique par des déterminants traditionnels, y compris l'investissement et les dépenses de recherche-développement. Il s'ensuit les implications pour la politique régionale. Variété Croissance; Effets externes de Jacob; Economies d'agglomération; Retombées Entropie Frenken K., Van Oort F. und Verburg T. (2007) Zusammenh01ngende Vielfalt, nicht zusammenh01ngende Vielfalt und regionales Wirtschaftswachstum, Regional Studies 41, 685–697. In der Wirtschaftstheorie unterscheidet man zwischen der Vielfalt als Quelle regionaler Wissensübertragung (den so genannten Jacobs-Externalit01ten) und der Vielfalt als Portfolio zum Schutz einer Region vor externen Erschütterungen. Wir stellen die These auf, dass sich die Jacobs-Externalit01ten am besten anhand der zusammenh01ngenden Vielfalt (innerhalb von Sektoren) messen lassen, w01hrend sich das Portfolio-Argument besser durch nicht zusammenh01ngende Vielfalt (zwischen verschiedenen Sektoren) darstellen l01sst. Mit Hilfe einer Methodologie auf der Grundlage entropischer Messungen ermitteln wir zusammenh01ngende Vielfalt und nicht zusammenh01ngende Vielfalt. Anhand von Daten auf dem NUTS 3-Niveau in den Niederlanden für den Zeitraum von 1996 bis 2002 stellen wir fest, dass die Jacobs-Externalit01ten zu einem Anstieg des Besch01ftigungsniveaus führen, w01hrend nicht zusammenh01ngende Vielfalt den Anstieg der Arbeitslosigkeit d01mpft. Der Anstieg der Produktivit01t l01sst sich durch traditionelle Determinanten wie Investitionen und Ausgaben für F&E erkl01ren. Im Anschluss werden die Konsequenzen für die Regionalpolitik beschrieben. Vielfalt; Wachstum; Jacobs-Externalit01ten; Agglomerationswirtschaften; U¨bertragung; Entropie; Frenken K., Van Oort F. y Verburg T. (2007) Variedad relacionada, variedad no relacionada y el crecimiento económico regional, Regional Studies 41, 685–697. En la teoría económica, podemos distinguir entre la variedad como una fuente de desbordamientos de conocimiento regionales, llamados externalidades Jacobs, y la variedad como una cartera que protege una región de choques externos. Sostenemos que las externalidades Jacobs se miden mejor según la variedad relacionada (dentro de los sectores), mientras que el argumento de la cartera se capta mejor con una variedad no relacionada (entre sectores). Para calcular la variedad relacionada y la variedad no relacionada, introducimos una metodología basada en las medidas de entropía. Usando datos en el nivel NUTS 3 en los Países Bajos para el periodo 1996–2002, observamos que las externalidades Jacobs aumentan el crecimiento de empleo mientras que la variedad no relacionada desestimula el crecimiento de desempleo. El crecimiento de productividad puede explicarse mediante determinantes tradicionales incluyendo las inversiones y los gastos en I + D. También explicamos las implicaciones para la política regional. Variedad; Crecimiento; Externalidades Jacobs; Economías de aglomeración; Desbordamiento; Entropía
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This article presents estimates of the impact of regional variety and trade linkages on regional economic growth by means of export and import data by Italian province (NUTS 3) and sector (three-digit) for the period 1995 2003. Our results show strong evidence that related variety contributes to regional economic growth. Thus, Italian regions that are well endowed with sectors that are complementary in terms of competences (i.e., that show related variety) perform better. The article also assesses the effects of the breadth and relatedness of international trade linkages on regional growth, since they may bring new and related variety to a region. Our analysis demonstrates that regional growth is not affected by simply being well connected to the outside world or having a high variety of knowledge flowing into the region. Rather, we found evidence of related extraregional knowledge sparking intersectoral learning across regions. When the cognitive proximity between the extraregional knowledge and the knowledge base of a region is neither too small nor too large, real learning opportunities are present, and the external knowledge contributes to growth in regional employment.
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Employing commodity flow data from input‐output (IO) tables, we construct two IO‐based measures to capture interindustry and intersegment vertical relatedness and complementarity. At the industry level, we demonstrate that the new IO‐based measures outperform traditional measures based on Standard Industry Classification (SIC) codes. At the firm level, we report that firms increase their degree of vertical relatedness and complementarity over time. The increasing pattern is robust; it is not sensitive to accounting changes in segment definition, different weighting methods, and different IO data employed. As an application, we examine the valuation effects of relatedness in the context of corporate diversification.
For empirical work in the resource-based view of the firm, characterizing the resources that are responsible for firm growth is difficult because valuable resources are often tacit, ambiguous, or difficult to identify. This is a particular problem for empirical assessments that rely upon the concept of relatedness between resources to characterize the direction of growth of the firm. We tackle the problem for the general case by developing a general interindustry relatedness index. The index harnesses the relatedness information embedded in the multiproduct organization decisions of every diversified firm in the U.S. manufacturing economy. The index is general in that it can be used across industry contexts without requiring explicit identification of resources and it provides a percentile relatedness rank for every possible pair of four-digit Standard Industrial Classification manufacturing industries. The general index is tested for predictive validity and found to perform as expected. Applications of the index in strategy research are suggested.
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Because of the importance of human capital, a firm's choice of diversification targets will depend on whether these targets offer opportunities for leveraging existing human resources. We propose to quantify the similarity of different industries' human capital or skill requirements, that is, the industries' skill relatedness, by using information on cross-industry labor flows. Labor flows among industries can be used to identify skill relatedness, because individuals changing jobs will likely remain in industries that value the skills associated with their previous work. Estimates show that firms are far more likely to diversify into industries that have ties to the firms' core activities in terms of our skill-relatedness measure than into industries without such ties or into industries that are linked by value chain linkages or by classification-based relatedness. Copyright 漏 2012 John Wiley & Sons, Ltd.
This paper claims that knowledge-relatedness is a key factor in affecting firms’ technological diversification. The hypothesis is tested that firms extend the range of their innovative activities in a non-random way. Specifically, we test the extent to which firms diversify their innovative activities across related technological fields, i.e. fields that share a common knowledge base and rely upon common heuristics and scientific principles. The paper proposes an original measure of knowledge-relatedness, using co-classification codes contained in patent documents, and examines the patterns of technological diversification of the whole population of firms from the United States, Italy, France, UK, Germany, and Japan patenting to the European Patent Office from 1982 to 1993. Robust evidence is found that knowledge-relatedness is a major feature of firms’ innovative activities.
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61We analyzed shale gas-related patent applications in the USPTO and SIPO.61We clustered shale gas patents by text mining patent abstract.61Differences were observed in shale gas technologies developed in the U.S. and China.61We proposed the policies of shale gas exploration and development based on patent analysis.
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The role of geographically mediated knowledge externalities in regional innovation systems has become a major issue in research policy. Although the process of innovation is a crucial aspect of economic growth, the problem of measuring innovation has not yet been completely resolved. A central problem involved in such analysis is the measurement of economically useful new knowledge. In the US information on this has been limited to an innovation count data base. Determining the extent to which the innovation data can be substituted by other measures is essential for a deeper understanding of the dynamics involved. We provide an exploratory and a regression-based comparison of the innovation count data and data on patent counts at the lowest possible levels of geographical aggregation.
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This paper reviews the scientific production of renewable energies, namely, solar, wind, biomass, hydropower and geothermal, from 1979 to 2009. The production of all the countries in the world is analysed, paying particular attention to renewable energies and research institutions. The production of scientific research for each type of energy is represented on world maps to show the degree of relationship between this research and the resources of these energies. It is observed that biomass is the most studied, both by number of publications, with 56% of the publications on renewable energy, and by geographical distribution. The next in importance by number of publications is solar energy (26%). The countries investigating solar energy, however, are not necessarily those with the greatest availability of this resource. Wind is the third positioned in publication (11%). Wind is being investigated by countries that most have implemented this type of energy production. Hydro and geothermal energies are also investigated by countries with great abundance of this resource. It is observed that research on renewable energy is highly concentrated in a few countries (12 or 14, depending on the energy type), accounting for between 70 and 80% of scientific production. The role of the USA as a leader in research in all renewable energies studies is emphasised. NASA is the leading institution for solar and wind energy, the Chinese Academy of Sciences leads in hydropower and biomass, and the U.S. Geological Survey leads in geothermal energy.
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This paper investigates the impact of scientific relatedness on knowledge dynamics in biotech at the city level during the period 1989鈥2008. We assess the extent to which the emergence of new research topics and the disappearance of existing topics in cities are dependent on their degree of scientific relatedness with existing topics in those cities. We make use of the rise and fall of title words in scientific publications in biotech to identify major cognitive developments within the field. We determined the degree of relatedness between 1028 scientific topics in biotech by means of co-occurrence of pairs of topics in journal articles. We combined this relatedness indicator between topics in biotech with the scientific portfolio of cities (i.e. the topics on which they published previously) to determine how cognitively close a potentially new topic (or an existing topic) is to the scientific portfolio of a city. We analyzed knowledge dynamics at the city level by looking at the entry and exit of topics in the scientific portfolio of 276 cities in the world. We found strong and robust evidence that new scientific topics in biotech tend to emerge systematically in cities where scientifically related topics already exist, while existing scientific topics had a higher probability to disappear from a city when these were weakly related to the scientific portfolio of the city.
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This article employs fixed effect quantile regression techniques to study the effects of technological relatedness on firm productivity and to investigate whether the size of those effects varies for low and high performing firms. Next, we consider how changes in the local industrial mix brought about by China’s market reforms influence the ability of different types of firms to benefit from technological-related spillovers. The findings highlight the important role that technological relatedness has on increasing firm productivity, providing some support for the idea that regions should pursue a strategy of ‘regional branching’ to evolve the local industrial mix into related economic activities. The findings also reveal, however, that increasing technological relatedness may asymmetrically harm underperforming firms and widen disparities in productivity between local firms.
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This study seeks to quantify the impact of the nonprofit sector on economic development by more clearly defining the diverse roles that nonprofits may play in development – instrumental, expressive, and connective. We begin by summarizing existing research on nonprofit organizations and economic development. Using secondary data, we test our model in 360 U.S. metropolitan areas for the years 2001–2006. Do nonprofit organizations produce economic growth? Our statistical findings suggest, “Not really” and “It depends.” While some forms of nonprofit organizations (business associations) are positively related to growth, others such as congregations and social and fraternal associations may have a dampening effect. Overall, our findings suggest complex relationships between individual forms of capital, organizational structures, and development that may be place and time dependent. While our findings currently provide little guidance for policy makers attempting to promote economic development, our findings do have important implications for nonprofit and public policy scholars. Any attempt to explore the relationship between nonprofit activity and development must untangle indicators of individual behavior (church attendance or census return rates) from indicators of organizational structures (such as the number of specific organizations). Second, any effort to understand the impact of the nonprofit sector should disaggregate sector measures based upon a conceptual understanding of the diverse roles of various organizational types (for example, human service organizations versus social and fraternal organizations). Finally, growth and development and the role of the sector are contextual, exhibiting significant regional and temporal variation.
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The biotechnology industry poses a particular challenge to analysis because its origins were poorly understood or even noticed at the time. The purpose of this paper is to examine and make sense of recent developments in the U.S. biotechnology industry. The pioneers and subsequent followers in biotechnology came from other fields. They altered their career trajectories in sciences like genetics and medical research to enter an unknown and undefined field, which only subsequently became labeled as biotechnology. Those regions exhibiting the greatest success in developing biotechnology clusters also possessed the greatest ability to unleash the potential commercialization latent in those scientists. To generate a successful regional cluster, the existence of world class scientific talent is a necessary condition. However, it is not a sufficient condition. The ancillary or complementary factors must also be available to translate this knowledge into a commercialized product. The complementary factors include the presence of venture capital and other forms of finance, the existence of an entrepreneurial culture, and transparent and minimal regulations fostering the start-up and growth processes.
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Evolutionary Economic Geography (EEG) has, thus far, neglected the contribution of universities to innovation processes in its emerging theoretical explanations of territorial economic change. This article begins to address this conceptual gap by outlining a perspective on the ways in which universities, as organizations with institutional features and functions that are distinctive to those of firms, can enhance the adaptive capacity of national or regional economies. The argument developed is based on a complexity theory view of system self-transformation and supports greater attention to this framework in a pluralistic EEG.
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This paper outlines the development of an entrepreneurial culture in the US Capitol region and the formation of a regional industrial cluster. The conditions that the literature associates with entrepreneurship lag rather than lead the development of the cluster. Supportive social capital, venture capital and entrepreneurial support services, as well as actively engaged research universities, are conditions that reflect the successful establishment of an entrepreneurial culture, built by the actions of pioneering entrepreneurs who often adapted to constructive crisis. Copyright 2001 by Oxford University Press.
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Research on innovation networks has increasingly considered their internationalization as a natural later stage in their evolution, necessitated by augmented competition and acceleration of technology cycles. A complex dynamic ensues in such later stages as firms and other actors in the innovation network begin to pursue their own interest in the innovation space, as it grows from local to global contexts. Grounded in complex system theory, in this paper we present a theoretical model of the interaction between centrifugal and centripetal forces that shape the decision making space in which entrepreneurs and higher management act as interdependent actors in a complex system. We base this model on an analysis of the way in which locally available resources, such as talent and knowledge interact with evolving business models, as technology-based firms face economic and technological uncertainties, and we set forth testable propositions derived from the model with the aim of identifying likely evolutionary paths in other innovation networks, and. Interview data from firms in the Vancouver fuel cell cluster is used to illustrate different components and processes in the model. Policy implications for innovation at the regional level are discussed.
BoschmaR, FrenkenK.Some notes on institutions in evolutionary economic geography. , 2009, 85(2): 151-158.
abstract Within the evolutionary economic geography framework, the role of institutions deserves more explicit attention. We argue that territorial institutions are to be viewed as orthogonal to organizational routines since each territory is characterized by a variety of routines and a single firm can apply its routines in different territorial contexts. It is therefore meaningful to distinguish between institutional economic geography and evolutionary economic geography as their explanans is different. Yet the two approaches can be combined in a dynamic framework in which institutions coevolve with organizational routines, particularly in emerging industries. Furthermore, integrating the evolutionary and institutional approach allows one to analyze the spatial diffusion of organizational routines that mediate conflicts among social groups, in particular, those between employers and employees. An evolutionary economic geography advocates an empirical research program, both qualitative and quantitative, that can address the relative importance of organizational routines and territorial institutions for regional development.
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ZhuJ.A transitional institution for the emerging land market in urban China. , 2005, 42(8): 1369-1390.
Chinese economic reforms since 1978 have been a continuous process of fundamental institutional change. The new institution of ambiguous property rights over state-owned urban land evolves from the socialist people's landownership. This institutional change is driven by the changing economic system and by two new organisations-the local developmental state and danwei-enterprises. The new institution facilitates the formation of an emerging land market. This land market, structured by ambiguous property rights, has accounted for the dynamic urban physical growth in many of China's coastal cities in the 1980s and 1990s. Nevertheless, massive rent dissipation induced by the new institution does not provide market certainty, nor does it offer incentives for optimal development. The cost incurred by the institution is gradually overtaking its benefit. The ambiguous property rights are deemed to be a transitional institution during the development of land markets in urban China.
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This paper analyses institutional change and its consequences on the conduct of state owned enterprises (SOEs) in China's housing sector since reforms began in 1978. Three distinct phases can be identified. In the pilot phase of 1978–1988, SOEs became producers and distributors of houses. In the second phase of 1988–1998, SOEs focused on the resale of public houses and became important contributors to the housing provident funds. In the third phase since 1998, SOEs expanded their role to become developers, investors and speculators in the housing market. The transformation of the urban housing sector from in-kind provision to market-based allocation helped turn losses made in the past to profits. The autonomy and the infusion of private modern management principles have stimulated upgrading in the construction and designing technology of houses developed by SOEs. However, as instruments of the state, SOEs still function as providers of social welfare to urban dwellers by promoting affordable housing to the poor, which shows that the state has remained central in balancing private and public interests in the housing market.
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61Empirical evidence suggests that increasing public land auctions boost economic growth.61This is consistent with the GDP-based evaluation criteria for political promotion in China.61Public land auctions occur in residential or commercial markets, but not industrial markets.61This indicates that local officials balance between political promotion and rent seeking.
TianL, MaW.Government intervention in city development of China: A tool of land supply. , 2009, 26(3): 599-609.
There has been continuous debate on whether the state can support market-based activities in the land market. It is widely recognized that land markets do not function by themselves, mainly because they are inherently imperfect; this imperfection provides foundation for state intervention. Under the Land Use Rights System of China, land supply is a powerful tool for intervening into land markets, and proceeds from land supply greatly contribute to local revenue and financing of infrastructure construction. The state, however, is not an impartial entity. Its desire to increase local revenue through land leasing has led to the oversupply of land and housing affordability problems in real estate markets. This paper, using evidence from Guangzhou, argues that land supply intervention is a two-edged sword in Chinese city development. It further claims that the state intervention is becoming gradually professional after the real estate market bubble in the early 1990s. Problems, such as structure imbalance in land supply, however, still have negative impacts on the sustainable development of Chinese cities.
[HeCanfei, XiaoXiaojun.Geography of multinational corporations in China: An empirical study of fortune global 500 multinational corporations in electronics and medical and chemical industries. , 2011, 66(12): 1669-1681.]
张瑜. 跨国公司R&D在华行业及地区分布的影响因素分析. , 2014.
[ZhangYu.The Analysis of Influence Factors Based on the Industries and Regions of MNCs R&D Organizations in China. , 2014.]
Silicon Valley in California and the Hsinchu-Taipei region of Taiwan are among the most frequently cited "miracles" of the information technology era. The dominant accounts of these successes treat them in isolation, focusing either on free markets, multinationals or the role of the state. This paper argues that the dynamism of these regional economies is attributable to their increasing interdependencies. A community of US-educated Taiwanese engineers has coordinated a decentralized process of reciprocal industrial upgrading by transferring capital, skill and know-how to Taiwan, and by facilitating collaborations between specialist producers in the two regions. This case underscores the significance of technical communities and their institutions in transferring technology and organizing production at the global as well as the local level. Copyright 2001 by Oxford University Press.