Global knowledge centrality: co-inventor collaboration with China

Purpose - This paper examines the role of co-inventor collaboration with China and/or the USA on a country's increase in centrality in global knowledge networks. It also explores the role of specific institutional factors – corruption and intellectual property rights (IPR) protection – on this relationship. Design/methodology/approach - In the study, co-inventor data from the United States Patent and Trademark Office (USPTO) applications have been used to construct networks of technological knowledge collaboration at the country level over the years 2002–2015. Using eigenvector centrality as the dependent variable, the study uses fixed effect regression analyses on a panel of 171 countries, contributing to recent debates on knowledge networks and international cooperation. Findings - Building on research in economic development, innovation and social network theory, this research finds that co-patenting with Chinese inventors is positively related to a country's centrality in global knowledge networks and that this relationship is negatively moderated by collaboration with the current most central knowledge network – namely that of the USA – suggesting a substitution effect. It also finds a partial substitution between institutional factors, IPRs protection and transparency, and collaboration with China on a country's knowledge centrality. Practical implications - Regarding policymakers, the findings can be used to encourage international collaboration for increased access to new sources of knowledge that fosters innovation while keeping a close eye on local institutions, especially emerging economies that want to increase their international knowledge network centrality. Originality/value - This study creates a unique panel data set and extends the social networks approach in international business literature, focusing on institutional characteristics related to participation in knowledge networks.