Technological innovation of firms in China: Past, present, and future

Abstract

What do we know about technological innovation of firms in China? What are the directions for future research on this topic? This paper summarizes and discusses some of the newest literature on technological innovation of firms in China in the following three ways: (1) the influence of firms' external factors, (2) the influence of firms' internal factors, and (3) interfirm cooperation factors. Based on the analysis of these articles, we propose a framework which highlights these influencing factors, decision-making and implementation of technological innovation and innovation performance, in the context of China's emerging economy. This framework sheds lights on future innovation research.

Firms’ innovation embedded in their networks of collaboration: China compared to the world

“…Several studies emphasize the importance of technological innovation in Chinese firms for the rapid development of China's economy (Yang et al 2012). Also, studies emphasize the positive impact of collaborative networks among firms as an important driver of innovation among Chinese firms.…”

“…In a review of technological innovation in China, Yang et al (2012) highlight several institutional characteristics of China with an impact on innovation by Chinese firms. Referring to a study by Huang et al (2004), human resource development, education, and protection of intellectual and industrial property, are factors mentioned which China has been -and potentially still is -lagging behind other countries.…”

The Impact of Financing Constraints and Agency Costs on Corporate R&D Investment: Evidence from China

“…Especially for China, the world's largest developing country with many economic growth problems such as production overcapacity and investment inefficiency, a transformation towards a market-based economy and industrial restructuring can only be achieved through increasing R&D activities and technological innovation (Xu et al 2008;Liu and Liu 2010;Zhen and Tang 2012;Chen 2013). It is now a general consensus in China that firms must enhance their competitiveness and maintain sustainable development by expanding R&D investments and promoting technological innovation (Liu and Liu 2011;Gu and Zhai 2012;Yang et al 2012;Lu et al 2013;Phillips 2013;Choi and Williams 2014). The Chinese government has also significantly expanded preferential policies and financial supports to firms' R&D investments in recent years.…”

Toward a construct of dynamic capabilities malfunction: Insights from failed Chinese entrepreneurs

“…Our second contribution adds and extends the existing literature on process-based explanations of business failure (Amankwah-Amoah, Boso & Antwi-Agyei, 2016). Furthermore, many of the existing studies on organisational failure have focused on firms in advanced economies as such little is known about business failure in developing economies in Eastern Europe (Lussier, 2001), China (Yang et al, 2012;Zhu et al, 2011) and Africa (Amankwah-Amoah & Debrah, 2014).…”