Financing Innovation in the Yangtze River Economic Belt: Rationale and Impact on Firm Growth and Foreign Trade

Abstract

Le rô le de plus en plus important que jouent les intermédiaires dans la promotion de l'innovation et de l'internationalisation des entreprises donne lieu à un nombre croissant d'études. La Chine a subi des pressions croissantes pour s'intéresser de plus près aux finances des entreprises et favoriser l'innovation. On sait toutefois peu de choses sur les activités des financiers entrepreneuriaux et leurs performances en Chine. En se basant sur les activités de ces financiers dans la zone économique du delta du Yangzi, les auteurs de cet article examinent comment ces derniers choisissent leurs projets et évaluent le succès qu'ils obtiennent. Les résultats montrent que des financiers agissent à l'intérieur du système financier pour favoriser l'innovation dans les entreprises ; ils ont tendance à se concentrer sur les technologies, et les plus importants ne sont pas les mêmes aux différents stades de développement technologique. Avec le soutien des financiers, les entreprises où des investissements sont faits maintiennent généralement un solide rythme de croissance, mais le commerce international dans les secteurs étudiés n'a pas beaucoup augmenté et a parfois même baissé. Les auteurs concluent en faisant des propositions en matière de développement industriel et international. Mots clés : finances entrepreneuriales, innovation, croissance des entreprises, commerce extérieur, zone économique du delta du YangziThe increasingly large role of financial intermediaries in promoting firms' innovation and internationalization has led to great research interest. China has faced mounting pressure to take entrepreneurial finance and innovation seriously. Little is known about entrepreneurial financiers' activities and performance. Focusing on entrepreneurial financiers' activities in the Yangtze River Economic Belt, this study investigates how they select projects and how well they perform in China. Evidence shows that various financiers serve in the financial system to nurture innovative entrepreneurial activities; they tend to focus on technology, and the major financiers vary with stage of industrial technological development. With the support of entrepreneurial finance, the invested firms in general maintain a sound growth momentum, but the foreign trade of relevant industries has not significantly increased and has even declined. The implication for industrial and international development policy is discussed.

Regional differences in mainland China after the 1970s economic reform

“…(In Chinese). 2 The North-Western region is mostly desert and mountains, and is far from coastal cities, it is located high above the sea level and usually has dry weather, often suffering from the lack of rain. Mineral resources in the north-western part include coal, oil, and gas.…”

“…It is composed of the Yangtze River Delta, Yangtze River Middle Reaches clusters and the Chengdu-Chongqing cluster. With Jing-Jin-Ji and the PRD, they form the most important locomotive of China's economy (Cheng et al 2017). In mainland China, there are 19 city clusters that have been built or are under planning, and the above five are the most promising.…”

China’s economy growth prospects and its potential drivers of future

“…More scholars for instance Cheng, Y et al(2017) also argued that the increasingly large role of financial intermediaries in promoting firms' innovation and internationalization has led to great research interest. China has faced mounting pressure to take entrepreneurial finance and innovation seriously.…”

Dynamic Transition and Convergence Trend of the Innovation Efficiency among Companies Listed on the Growth Enterprise Market in the Yangtze River Economic Belt—Empirical Analysis Based on DEA—Malmquist Model

“…As one of the important development regions in China, the innovation of the YREB has received the attention and research of many scholars. Cheng, Y et al [34] focused on the activities of entrepreneur financiers in the YREB, and made relevant research on financing innovation activities in the Yangtze River Delta region; Liu Y et al [35] studied the spatial integration of urban agglomeration in the YREB and its relationship with industrial development, so as to provide support for future regional spatial integration and coordinated development; Zou L et al [36] studied the efficiency of high-tech innovation in the region and found that the efficiency of high-tech innovation in China is continuously improving, but the regional differences are large, and put forward policy recommendations on the research conclusions; Meng D et al [37] analyzed the spatial agglomeration effect of listed companies in China's YREB and its causes, and studied the main factors affecting their innovation efficiency. Yi M et al [38] studied the impact of government research and development subsidies and environmental regulations on green innovation efficiency of the manufacturing industry in China's YREB; Li X et al [39] took the Yangtze River Economic Zone as the research object to explore the impact of foreign direct investment on high-quality economic development under environmental regulations.…”