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Subcontracting and Supplier Innovativeness in a Developing Economy: Evidence from China's Information and Communication Technology Industry

Author

Listed:
  • Yifei Sun
  • Yu Zhou
  • George C. S. Lin
  • Y. H. Dennis Wei

Abstract

Sun Y., Zhou Y., Lin G. C. S. and Wei Y. H. D. Subcontracting and supplier innovativeness in a developing economy: evidence from China's information and communication technology industry, Regional Studies . This study critically evaluates the relevance of the global value chains theory against the actual practices of subcontracting and technological innovation in China based on a large-scale empirical firm survey in the information and communication technology industry. The results suggest that the impact of subcontracting depends on local suppliers' absorptive capabilities; that the impact of global value chains on local technology upgrading is not linear; and an overdependence on subcontracting for the global market could hurt technological innovation.

Suggested Citation

  • Yifei Sun & Yu Zhou & George C. S. Lin & Y. H. Dennis Wei, 2013. "Subcontracting and Supplier Innovativeness in a Developing Economy: Evidence from China's Information and Communication Technology Industry," Regional Studies, Taylor & Francis Journals, vol. 47(10), pages 1766-1784, November.
    • Handle: RePEc:taf:regstd:v:47:y:2013:i:10:p:1766-1784
    DOI: 10.1080/00343404.2011.632227
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    References listed on IDEAS

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    1. Yasheng Huang, 2005. "Symposium on 'Selling China: Foreign Direct Investment during the Reform Era' - Huang's Response," Management and Organization Review, International Association of Chinese Management Research, vol. 1(2), pages 329-333, July.
    2. Michael Hobday, 1995. "Innovation In East Asia," Books, Edward Elgar Publishing, number 226, June.
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    2. Wang, Huan & Zheng, Leven J. & Zhang, Justin Zuopeng & Kumar, Ajay & Srivastava, Praveen Ranjan, 2024. "Unpacking complementarity in innovation ecosystems: A configurational analysis of knowledge transfer for achieving breakthrough innovation," Technological Forecasting and Social Change, Elsevier, vol. 198(C).
    3. Gnangnon, Sèna Kimm, 2024. "Trade Policy Space, Aid for Trade and, Intra-African and External African Manufactured Exports," International Economics, Elsevier, vol. 180(C).
    4. Kroll, Henning, 2015. "Exploring pathways of regional technological development in China through patent analysis," Working Papers "Firms and Region" R1/2015, Fraunhofer Institute for Systems and Innovation Research (ISI).
    5. Ingo Liefner & Sabine Jessberger, 2016. "The use of the analytical hierarchy process as a method of comparing innovation across regions: The examples of the equipment manufacturing industries of Shanghai and Xiamen, China," Environment and Planning A, , vol. 48(6), pages 1188-1208, June.
    6. John Humphrey & Ke Ding & Mai Fujita & Shiro Hioki & Koichiro Kimura, 2018. "Platforms, Innovation and Capability Development in the Chinese Domestic Market," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(3), pages 408-423, July.
    7. Valentina De Marchi & Elisa Giuliani & Roberta Rabellotti, 2018. "Do Global Value Chains Offer Developing Countries Learning and Innovation Opportunities?," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(3), pages 389-407, July.
    8. Henry Wai-chung Yeung, 2015. "Regional development in the global economy: A dynamic perspective of strategic coupling in global production networks," Regional Science Policy & Practice, Wiley Blackwell, vol. 7(1), pages 1-23, March.

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