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The purpose of this research is to examine the relationship between R&D subsidies and global value chain position (GVCP), as well as the moderating role of internet penetration. Panel regression model analysis of a dataset of Chinese regional GVCP from 2005 to 2016 shows an inverted U-shaped relationship between R&D subsidies and GVCP. Furthermore, our empirical analysis suggests that internet penetration can weaken this inverted U-shaped relationship. These results highlight the importance of internet penetration for regional enterprises and provide policy makers with new insights into their subsidy policies.

Purpose This study aims to investigate the relationship between entrepreneurship and innovation efficiency (IE), as well as the moderating role of absorptive capacity. Design/methodology/approach This study uses a sample of industrial enterprises from Chinese provinces from 2005 to 2016, and it tests the research questions using the method of stochastic frontier analysis. Findings The results of this study indicate that entrepreneurship promotes IE, and that absorptive capacity plays a positive moderating role. In addition, the effect of entrepreneurship on IE differs between the central and eastern regions and the western region. Originality/value This research provides direct policy implications by demonstrating the role of entrepreneurship and absorptive capacity in IE, thereby guiding corporate management practices and the formulation of government innovation and entrepreneurship policies.

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Purpose Because of the rapid progress of global value chains (GVCs), it is worthwhile to study their impact on innovation. This study aims to explore the impact of GVC position of high-tech industries in the developing-country context of China on innovation performance; it also aims to explore the moderating effects of industrial agglomeration (specialization agglomeration and diversification agglomeration) on the relationship between GVC position and innovation performance. Design/methodology/approach The study is based on data gathered on Chinese high-tech industries in 30 provinces from the 2005–2015 period. The econometric analysis relies on merged data from the China Premium Database and the Trade in Value Added 2018 Database. Findings The regression results show that GVC position of China’s high-tech industries significantly affects their innovation performance, and both specialization agglomeration and diversification agglomeration significantly enhance the positive relationship between GVC position and innovation performance of China’s high-tech industries. After dividing the country into coastal and inland regions, new findings appear. Originality/value This study highlights the importance of GVC position and its effect on innovation performance of China’s high-tech industries. It contributes to the literature on the relationship between GVCs and innovation by elaborating on the moderating effects of industrial agglomeration on this relationship.

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