IDEAS home Printed from https://ideas.repec.org/p/unm/unumer/2010052.html
   My bibliography  Save this paper

Innovation strategy, firm survival and relocation: The case of Hong Kong-owned manufacturing in Guangdong province, China

Author

Listed:
  • Sharif, Naubahar

    (Division of Social Science, The Hong Kong University of Science and Technology)

  • Huang, Can

    (UNU-MERIT, Maastricht University)

Abstract

Based on a survey adapted from the Fourth European Community Innovation Survey (CIS-4), this study finds that, in the changing manufacturing environment of Guangdong province in China, Hong Kong-owned businesses that generate a higher share in new product sales as a percentage of total sales or engage in R&D or collaborative innovation activities in China are more likely to survive and remain in Guangdong. The study fills a gap in the literature by investigating the effects of innovation on the survival and relocation of Hong Kong-owned manufacturing firms in Guangdong. The results support policy initiatives that strengthen collaborative ties among key innovation system actors.

Suggested Citation

  • Sharif, Naubahar & Huang, Can, 2010. "Innovation strategy, firm survival and relocation: The case of Hong Kong-owned manufacturing in Guangdong province, China," MERIT Working Papers 2010-052, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2010052
    as

    Download full text from publisher

    File URL: https://www.merit.unu.edu/publications/wppdf/2010/wp2010-052.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Samira Oukarfi & Maurice Baslé, 2009. "Public-sector financial incentives for business relocation and effectiveness measures based on company profile and geographic zone," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 43(2), pages 509-526, June.
    2. Elena Cefis & Orietta Marsili, 2005. "A matter of life and death: innovation and firm survival," Industrial and Corporate Change, Oxford University Press, vol. 14(6), pages 1167-1192, December.
    3. G. M.P. Swann, 2009. "The Economics of Innovation," Books, Edward Elgar Publishing, number 13211.
    4. Robert C. Feenstra & Gordon H. Hanson, 2004. "Intermediaries in Entrepôt Trade: Hong Kong Re‐Exports of Chinese Goods," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 13(1), pages 3-35, March.
    5. Martin, Ron, 1999. "The New 'Geographical Turn' in Economics: Some Critical Reflections," Cambridge Journal of Economics, Oxford University Press, vol. 23(1), pages 65-91, January.
    6. ,, 2007. "African Development Report 2007," OUP Catalogue, Oxford University Press, number 9780199238866, Decembrie.
    7. Eleonora Bartoloni & Maurizio Baussola, 2001. "The Determinants of Technology Adoption in Italian Manufacturing Industries," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 19(3), pages 305-328, November.
    8. Christian Rammer & Dirk Czarnitzki & Alfred Spielkamp, 2009. "Innovation success of non-R&D-performers: substituting technology by management in SMEs," Small Business Economics, Springer, vol. 33(1), pages 35-58, June.
    9. Utterback, James M & Abernathy, William J, 1975. "A dynamic model of process and product innovation," Omega, Elsevier, vol. 3(6), pages 639-656, December.
    10. Andersen, Torben G. & Lewbel, Arthur & Ng, Serena, 2007. "Editors' Report 2006," Journal of Business & Economic Statistics, American Statistical Association, vol. 25, pages 503-503, October.
    11. AfDB AfDB, . "African Development Report 2006," African Development Report, African Development Bank, number 23 edited by Adeleke Oluwole Salami.
    12. Clayton M. Christensen & Fernando F. Suárez & James M. Utterback, 1998. "Strategies for Survival in Fast-Changing Industries," Management Science, INFORMS, vol. 44(12-Part-2), pages 207-220, December.
    13. Steinfeld, Edward S., 2004. "China's Shallow Integration: Networked Production and the New Challenges for Late Industrialization," World Development, Elsevier, vol. 32(11), pages 1971-1987, November.
    14. Klepper, Steven & Simons, Kenneth L, 1997. "Technological Extinctions of Industrial Firms: An Inquiry into Their Nature and Causes," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 6(2), pages 379-460, March.
    15. Honglin Zhang, Kevin, 2005. "Why does so much FDI from Hong Kong and Taiwan go to Mainland China?," China Economic Review, Elsevier, vol. 16(3), pages 293-307.
    16. Audretsch, David B, 1991. "New-Firm Survival and the Technological Regime," The Review of Economics and Statistics, MIT Press, vol. 73(3), pages 441-450, August.
    17. Gort, Michael & Klepper, Steven, 1982. "Time Paths in the Diffusion of Product Innovations," Economic Journal, Royal Economic Society, vol. 92(367), pages 630-653, September.
    18. Pierre Mohnen & Marcel Dagenais, 2002. "Towards an Innovation Intensity Index: The Case of CIS 1 in Denmark and Ireland," Palgrave Macmillan Books, in: Alfred Kleinknecht & Pierre Mohnen (ed.), Innovation and Firm Performance, chapter 1, pages 3-30, Palgrave Macmillan.
    19. Enright, Michael J. & Scott, Edith E. & Dodwell, David, 1997. "The Hong Kong Advantage," OUP Catalogue, Oxford University Press, number 9780195903225, Decembrie.
    20. Veugelers, Reinhilde & Cassiman, Bruno, 1999. "Make and buy in innovation strategies: evidence from Belgian manufacturing firms," Research Policy, Elsevier, vol. 28(1), pages 63-80, January.
    21. Newey, Whitney K., 1987. "Efficient estimation of limited dependent variable models with endogenous explanatory variables," Journal of Econometrics, Elsevier, vol. 36(3), pages 231-250, November.
    22. Yu, Tony Fu-Lai, 1998. "Adaptive entrepreneurship and the economic development of Hong Kong," World Development, Elsevier, vol. 26(5), pages 897-911, May.
    23. Eom, Boo-Young & Lee, Keun, 2010. "Determinants of industry-academy linkages and, their impact on firm performance: The case of Korea as a latecomer in knowledge industrialization," Research Policy, Elsevier, vol. 39(5), pages 625-639, June.
    24. Yam, Richard C.M. & Lo, William & Tang, Esther P.Y. & Lau, Antonio K.W., 2011. "Analysis of sources of innovation, technological innovation capabilities, and performance: An empirical study of Hong Kong manufacturing industries," Research Policy, Elsevier, vol. 40(3), pages 391-402, April.
    25. Huang, Can & Sharif, Naubahar, 2009. "Manufacturing dynamics and spillovers: The case of Guangdong Province and Hong Kong, Macau, and Taiwan (HKMT)," Research Policy, Elsevier, vol. 38(5), pages 813-828, June.
    26. Motohashi, Kazuyuki & Yun, Xiao, 2007. "China's innovation system reform and growing industry and science linkages," Research Policy, Elsevier, vol. 36(8), pages 1251-1260, October.
    27. Catherine M. Banbury & Will Mitchell, 1995. "The effect of introducing important incremental innovations on market share and business survival," Strategic Management Journal, Wiley Blackwell, vol. 16(S1), pages 161-182.
    28. AfDB AfDB, . "African Development Report 2007," African Development Report, African Development Bank, number 24 edited by Adeleke Oluwole Salami.
    29. Ho‐Fuk Lau & Sebastian Green, 2001. "The Electronics Industry: Can Manufacturing Continue in Hong Kong?," The World Economy, Wiley Blackwell, vol. 24(8), pages 1075-1090, September.
    30. David B. Audretsch, 1995. "Innovation and Industry Evolution," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011468, December.
    31. AfDB AfDB, . "AfDB Group Annual Report 2006," Annual Report, African Development Bank, number 62 edited by Koua Louis Kouakou.
    32. William Lazonick, 2004. "Indigenous Innovation and Economic Development: Lessons from China's Leap into the Information Age," Industry and Innovation, Taylor & Francis Journals, vol. 11(4), pages 273-297.
    33. Alfred Kleinknecht & Pierre Mohnen (ed.), 2002. "Innovation and Firm Performance," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-59588-0, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Isabel-Maria Bodas Freitas & Jojo Jacob & Lili Wang & Zibiao Li, 2023. "Energy use and exporting: an analysis of Chinese firms," Journal of Evolutionary Economics, Springer, vol. 33(1), pages 179-207, January.
    2. Denny IRAWAN & OKIMOTO Tatsuyoshi, 2021. "Conditional Capital Surplus and Shortfall across Resource Firms," Discussion papers 21031, Research Institute of Economy, Trade and Industry (RIETI).
    3. Ugur, Mehment & Vivarelli, Marco, 2020. "The role of innovation in industrial dynamics and productivity growth: a survey of the literature," GLO Discussion Paper Series 648, Global Labor Organization (GLO).
    4. Bingqiang Li & Lei Huang, 2019. "The Effect of Incremental Innovation and Disruptive Innovation on the Sustainable Development of Manufacturing in China," SAGE Open, , vol. 9(1), pages 21582440198, February.
    5. Mehmet Ugur & Marco Vivarelli, 2021. "Innovation, firm survival and productivity: the state of the art," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 30(5), pages 433-467, July.
    6. Inwon Kang & Hae Seok Jee & Matthew Minsuk Shin, 2018. "Affective Policy Performance Evaluation Model: A Case of an International Trade Policy Implementation," Sustainability, MDPI, vol. 10(1), pages 1-18, January.
    7. Antonio Duréndez & Julio Dieguez-Soto & Antonia Madrid-Guijarro, 2023. "The influence of CEO’s financial literacy on SMEs technological innovation: the mediating effects of MCS and risk-taking," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 9(1), pages 1-26, December.
    8. Irawan, Denny & Okimoto, Tatsuyoshi, 2022. "Conditional capital surplus and shortfall across renewable and non-renewable resource firms," Energy Economics, Elsevier, vol. 112(C).
    9. Sizhong Sun & Sajid Anwar, 2018. "Product innovation in China’s food processing industries," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 42(3), pages 492-507, July.
    10. Yong-Sik Hwang & Kidong Kim, 2018. "The Effects of Inter-Partner Trust on Third-Country Relocation of International Joint Ventures in China," Sustainability, MDPI, vol. 10(7), pages 1-23, July.
    11. Iwasaki, Ichiro & 岩﨑, 一郎 & イワサキ, イチロウ, 2012. "Global Financial Crisis, Corporate Governance, and Firm Survival: The Case of Russia," RRC Working Paper Series 37, Russian Research Center, Institute of Economic Research, Hitotsubashi University.
    12. Ortiz-Villajos, José M. & Sotoca, Sonia, 2018. "Innovation and business survival: A long-term approach," Research Policy, Elsevier, vol. 47(8), pages 1418-1436.
    13. Pål Børing, 2015. "The effects of firms’ R&D and innovation activities on their survival: a competing risks analysis," Empirical Economics, Springer, vol. 49(3), pages 1045-1069, November.
    14. Xinjun Lyu & Jinlan Ni & Jia Yuan, 2022. "Market segmentation and firm survival," Growth and Change, Wiley Blackwell, vol. 53(3), pages 1243-1266, September.
    15. Deni Irawan & Tatsuyoshi Okimoto, 2021. "Conditional Capital Surplus and Shortfall across Renewable and Non-Renewable Resource Firms," LPEM FEBUI Working Papers 202165, LPEM, Faculty of Economics and Business, University of Indonesia, revised 2021.
    16. Lin, Chia-Ling & Lin, Hui-Lin & Lin, Eric S., 2016. "Is There A Complementary Relationship Between Product And Process Innovation On Productivity In Taiwanese Manufacturing Firms?," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 57(2), pages 139-173, December.
    17. Yan Liu & Xunpeng Shi & James Laurenceson, 2018. "Are China's Exports Crowding Out or Being Crowded Out? Evidence from Japan's Imports," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 26(4), pages 1-23, July.
    18. Chan-Yuan Wong & Xiao-Shan Yap, 2012. "Mapping technological innovations through patent analysis: a case study of foreign multinationals and indigenous firms in China," Scientometrics, Springer;Akadémiai Kiadó, vol. 91(3), pages 773-787, June.
    19. Donbesuur, Francis & Ampong, George Oppong Appiagyei & Owusu-Yirenkyi, Diana & Chu, Irene, 2020. "Technological innovation, organizational innovation and international performance of SMEs: The moderating role of domestic institutional environment," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    20. Mehmet Ugur & Marco Vivarelli, 2020. "Technology, industrial dynamics and productivity: a critical survey," DISCE - Quaderni del Dipartimento di Politica Economica dipe0011, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    21. Wang, Jue & Chandra, Kevin & Du, Coco & Ding, Weizhen & Wu, Xun, 2021. "Assessing the Potential of Cross-border regional innovation Systems:A case study of the Hong Kong -Shenzhen region," Technology in Society, Elsevier, vol. 65(C).
    22. Mingqian Zhang & Pierre Mohnen, 2022. "R&D, innovation and firm survival in Chinese manufacturing, 2000–2006," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 12(1), pages 59-95, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cefis, Elena & Marsili, Orietta, 2012. "Going, going, gone. Exit forms and the innovative capabilities of firms," Research Policy, Elsevier, vol. 41(5), pages 795-807.
    2. Ugur, Mehmet & Trushin, Eshref & Solomon, Edna, 2015. "Inverted-U relationship between innovation and survival: Evidence from firm-level UK data," MPRA Paper 68010, University Library of Munich, Germany, revised 10 Nov 2015.
    3. Kim, Jungho & Lee, Chang-Yang, 2016. "Technological regimes and firm survival," Research Policy, Elsevier, vol. 45(1), pages 232-243.
    4. Cefis, Elena & Marsili, Orietta, 2006. "Survivor: The role of innovation in firms' survival," Research Policy, Elsevier, vol. 35(5), pages 626-641, June.
    5. Carolyn Cordery & Rachel Baskerville & Brenda Porter, 2010. "Control or collaboration?," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 23(6), pages 793-813, August.
    6. Meerman, J.C. & Ramírez, A. & Turkenburg, W.C. & Faaij, A.P.C., 2011. "Performance of simulated flexible integrated gasification polygeneration facilities. Part A: A technical-energetic assessment," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(6), pages 2563-2587, August.
    7. Silviano Esteve-Pérez & Fabio Pieri & Diego Rodriguez, 2018. "Age and productivity as determinants of firm survival over the industry life cycle," Industry and Innovation, Taylor & Francis Journals, vol. 25(2), pages 167-198, February.
    8. Sergey Filippov & Kálmán Kalotay, 2009. "New Europe’s Promise for Life Sciences," Chapters, in: Wilfred Dolfsma & Geert Duysters & Ionara Costa (ed.), Multinationals and Emerging Economies, chapter 3, Edward Elgar Publishing.
    9. World Bank, 2010. "Paraguay Poverty Assessment : Determinants and Challenges for Poverty Reduction [Paraguay - Estudio de pobreza : determinantes y desafíos para la reduccion de la pobreza]," World Bank Publications - Reports 12585, The World Bank Group.
    10. Hyytinen, Ari & Pajarinen, Mika & Rouvinen, Petri, 2015. "Does innovativeness reduce startup survival rates?," Journal of Business Venturing, Elsevier, vol. 30(4), pages 564-581.
    11. Mingqian Zhang & Pierre Mohnen, 2022. "R&D, innovation and firm survival in Chinese manufacturing, 2000–2006," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 12(1), pages 59-95, March.
    12. Huang, Can & Arundel, Anthony & Hollanders, Hugo, 2010. "How Firms Innovate: R&D, Non-R&D, and Technology Adoption," MERIT Working Papers 2010-027, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    13. Marco Vivarelli, 2012. "Entrepreneurship and Post-Entry Performance: the Microeconomic Evidence," DISCE - Quaderni del Dipartimento di Scienze Economiche e Sociali dises1286, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    14. Meerman, J.C. & Ramírez, A. & Turkenburg, W.C. & Faaij, A.P.C., 2012. "Performance of simulated flexible integrated gasification polygeneration facilities, Part B: Economic evaluation," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(8), pages 6083-6102.
    15. Zhang M. & Mohnen P., 2013. "Innovation and survival of new firms in Chinese manufacturing, 2000-2006," MERIT Working Papers 2013-057, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    16. Bonaccorsi, Andrea & Giuri, Paola, 2000. "When shakeout doesn't occur: The evolution of the turboprop engine industry," Research Policy, Elsevier, vol. 29(7-8), pages 847-870, August.
    17. Peeters, T.J.G., 2013. "External knowledge search and use in new product development," Other publications TiSEM 300ebb34-b090-4210-b95e-f, Tilburg University, School of Economics and Management.
    18. Pål Børing, 2015. "The effects of firms’ R&D and innovation activities on their survival: a competing risks analysis," Empirical Economics, Springer, vol. 49(3), pages 1045-1069, November.
    19. Christos Genakos & Ioannis Kaplanis & Maria Theano Tagaraki & Aggelos Tsakanikas, 2023. "Firm Resilience and Growth during the Economics Crisis: lessons from the Greek depression," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 186, Hellenic Observatory, LSE.
    20. Hervas-Oliver, Jose-Luis & Sempere-Ripoll, Francisca & Boronat-Moll, Carles, 2012. "Process innovation objectives and management complementarities: patterns, drivers, co-adoption and performance effects," MERIT Working Papers 2012-051, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

    More about this item

    Keywords

    Innovation; Survival; Relocation; Community Innovation Survey; Asia; China;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:unm:unumer:2010052. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ad Notten (email available below). General contact details of provider: https://edirc.repec.org/data/meritnl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.