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The effect of corporate agglomeration networks on breakthrough innovation—Evidence from China

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  • Hu, Jinjin
  • Huo, Dong
  • Wu, Delin
  • Yang, Chunhong

Abstract

This study investigates whether and how corporate agglomeration networks influence breakthrough innovation. Using a sample of 3097 firms, the research first demonstrates that corporate agglomeration networks facilitate breakthrough innovation, with digital technology adoption playing a synergistic role in this process. Through polynomial regression and mechanism analysis, the study further reveals that corporate agglomeration networks impact breakthrough innovation primarily through two mechanisms: information flow effect and cash flow effect. The impact of corporate agglomeration networks and digital technology adoption on breakthrough innovation exhibits heterogeneity across different technological industries and ownership types. This research enriches the study of corporate agglomeration networks and breakthrough innovation from both spatial and social perspectives, providing insights for corporate agglomeration and innovation policy.

Suggested Citation

  • Hu, Jinjin & Huo, Dong & Wu, Delin & Yang, Chunhong, 2025. "The effect of corporate agglomeration networks on breakthrough innovation—Evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 212(C).
    • Handle: RePEc:eee:tefoso:v:212:y:2025:i:c:s0040162525000113
    DOI: 10.1016/j.techfore.2025.123980
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