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Mapping the functionality of China's regional innovation systems: A structural approach

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  • Chen, Kaihua
  • Guan, Jiancheng

Abstract

With the deepening of China's innovation system reform entering into the 21st century, its functionality has received considerable attention in both academic and policy-making contexts. However, it has not been fully uncovered yet in a more systematic and practical manner possibly due to theoretical or methodological reasons. In this study, a structural approach with partial least squares is introduced to incorporate various functional constructs together determining the performance of innovation systems into an integrated path framework based on the extended framework of Romer's idea production function. By constructing a rich province-year panel dataset over the 10th five-year plan period of China, we use the novel analytical framework to detect and untangle the periodically operating state of China's regional innovation systems (RISs) in terms of the effectiveness of functional constructs shaping and influencing the innovation process. The examination results show that China's RISs perform well in terms of the performance of most functional constructs except for "innovation linkage" as well as "innovation sophistication". With respect to the interactive effects between the contextual innovation environment and the innovation process, however, China's RISs perform poorly from the perspective of system thinking.

Suggested Citation

  • Chen, Kaihua & Guan, Jiancheng, 2011. "Mapping the functionality of China's regional innovation systems: A structural approach," China Economic Review, Elsevier, vol. 22(1), pages 11-27, March.
  • Handle: RePEc:eee:chieco:v:22:y:2011:i:1:p:11-27
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    References listed on IDEAS

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    Cited by:

    1. Lau, Antonio K.W. & Lo, William, 2015. "Regional innovation system, absorptive capacity and innovation performance: An empirical study," Technological Forecasting and Social Change, Elsevier, vol. 92(C), pages 99-114.
    2. Li, Hao-Chung & Lee, Wen-Chieh & Ko, Bo-Ting, 2017. "What determines misallocation in innovation? A study of regional innovation in China," Journal of Macroeconomics, Elsevier, vol. 52(C), pages 221-237.
    3. Shahid Yusuf, 2012. "From Technological Catch-up to Innovation : The Future of China’s GDP Growth," World Bank Other Operational Studies 12781, The World Bank.
    4. repec:elg:eechap:14395_24 is not listed on IDEAS
    5. Zhang, Lin, 2017. "The knowledge spillover effects of FDI on the productivity and efficiency of research activities in China," China Economic Review, Elsevier, vol. 42(C), pages 1-14.
    6. Giorgio Prodi & Federico Frattini & Francesco Nicolli, 2016. "Regional Innovation Systems in China: A long-term perspective based on patent data at the prefectural level," SEEDS Working Papers 0316, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Apr 2016.
    7. Chen Kaihua & Kou Mingting, 2014. "Staged efficiency and its determinants of regional innovation systems: a two-step analytical procedure," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 52(2), pages 627-657, March.
    8. Goess, Simon & de Jong, Martin & Ravesteijn, Wim, 2015. "What makes renewable energy successful in China? The case of the Shandong province solar water heater innovation system," Energy Policy, Elsevier, vol. 86(C), pages 684-696.
    9. Guan, JianCheng & Yam, Richard C.M., 2015. "Effects of government financial incentives on firms’ innovation performance in China: Evidences from Beijing in the 1990s," Research Policy, Elsevier, vol. 44(1), pages 273-282.
    10. Reza Naghizadeh & Shaban Elahi & Manoochehr Manteghi & Sepehr Ghazinoory & Marina Ranga, 2015. "Through the magnifying glass: an analysis of regional innovation models based on co-word and meta-synthesis methods," Quality & Quantity: International Journal of Methodology, Springer, vol. 49(6), pages 2481-2505, November.

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