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Impact of Government Intervention on Industrial Cluster Innovation Network in Developing Countries

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  • Qi Zhong
  • Tang Tang

Abstract

This article aims to disclose the exact relationship between government intervention and the evolution of industrial cluster innovation network in developing countries. Therefore, this article examines the role of government intervention in the evolution of the network from the perspective of network structure. After reviewing the structure of the innovation network, the author set up an evolution model of industrial cluster innovation network based on weighted scale-free network. Through computer simulations, it is learned that government intervention has a great impact on the evolution of industrial cluster innovation network. In the network formation stage, the impact of government intervention on the average shortest path exhibits as a U-shaped trend. In this stage, the government should intervene moderately to keep a short distance and close contact between the subjects. In the network stabilization stage, the effect of government intervention on the average shortest path is in the shape of an inverted U. In this case, the government should reduce the intervention, encourage enterprise innovation, and reduce the innovation risk of the whole network. The findings provide valuable reference for research in relevant fields.

Suggested Citation

  • Qi Zhong & Tang Tang, 2018. "Impact of Government Intervention on Industrial Cluster Innovation Network in Developing Countries," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 54(14), pages 3351-3365, November.
    • Handle: RePEc:mes:emfitr:v:54:y:2018:i:14:p:3351-3365
    DOI: 10.1080/1540496X.2018.1434504
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    Cited by:

    1. Shanshan Liu & Feng Deng & Baosheng Yuan, 2023. "How Does Public Capital Affect Enterprise Technological Innovation Based on Empirical Evidence from Chinese Listed Companies," Sustainability, MDPI, vol. 15(10), pages 1-17, May.
    2. Fouad Jamaani & Manal Alidarous & Abdullah Al-Awadhi, 2021. "The Early Impact of Government Financial Intervention Policies and Cultural Secrecy on Stock Market Returns During the COVID-19 Pandemic: Evidence From Developing Countries," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 12(2), pages 401-416, April.
    3. Huaxi Yuan & Longhui Zou & Xiangyong Luo & Yidai Feng, 2022. "How Does Manufacturing Agglomeration Affect Green Development? A Spatial and Nonlinear Perspective," IJERPH, MDPI, vol. 19(16), pages 1-23, August.
    4. Lee, Chien-Chiang & Wang, Chih-Wei & Ho, Shan-Ju, 2020. "Country governance, corruption, and the likelihood of firms’ innovation," Economic Modelling, Elsevier, vol. 92(C), pages 326-338.
    5. Liping Fu & Fan Wu & Shan Zhang, 2022. "Evolutionary Path and Innovative Development of Pharmaceutical Industrial Cluster—A Case Study of Shijiazhuang, China," IJERPH, MDPI, vol. 19(5), pages 1-18, March.
    6. Luo, Kun & Lim, Edwin KiaYang & Qu, Wen & Zhang, Xuan, 2021. "Board cultural diversity, government intervention and corporate innovation effectiveness: Evidence from China," Journal of Contemporary Accounting and Economics, Elsevier, vol. 17(2).

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