Abstract
Compared with developed countries, the paper explores whether non-R&D innovation activities in China actually are effective and provides a guidance on how we can choose a sustainable innovation mode for non-R&D, especially considering the “threshold effect” of the heterogeneity of different regional innovation levels. The dynamic threshold panel models of the non-R&D (NRD) effect on the basis of the threshold of regional innovation level is constructed to verify the complex “threshold effect” characteristics between non-R&D and innovation performance. The empirical results are discussed according to the panel data for 30 provinces in China concerning the high-tech industry. Results argue that the mechanism of non-R&D innovation activities on innovation performance have a significantly different “threshold effect.” Interestingly, when the threshold of regional innovation keeps a low level, the negative effect of non-R&D innovation activities is much larger. When the threshold level of regional innovation increases, reaching the critical mass, the negative impact of non-R&D innovation activities on innovation performance becomes smaller. However, once the regional innovation level crosses the critical mass, the negative impact of non-R&D shows a significantly increasing tendency. Specifically, neither much higher nor much lower regional innovation level is conducive to the promoting effect of non-R&D activities. The negative impact of non-R&D on performance will decrease to the minimum only in the regions within the moderate threshold level (critical mass). The dynamic nonlinear mechanism between non-R&D activities and innovation performance is empirically studied to assist high-tech enterprises for innovation sustainability based on heterogeneity of different regional innovation levels.
Highlights
Innovation sustainability has enabled enterprises to perform better in the social and environmental dimensions while enhancing their financial performance [1,2]
Neither much higher nor much lower regional innovation level is conducive to the promoting effect of non-R&D activities
When the regional innovation reaches the moderate threshold level, the negative effect of non-R&D on innovation performance will decrease to the minimum
Summary
Innovation sustainability has enabled enterprises to perform better in the social and environmental dimensions while enhancing their financial performance [1,2]. Boons and Lüdeke-Freund [3] pointed out the integration of environmental and social activities, as well as the internalization of socio-environmental costs and the fundamental role played by innovation can effectively create a truly sustainable value. In view of the global ecological sustainability, it is essential for the industry sector to choose the path of sustainable innovation and take the lead in realizing the transformation from extensive economic growth to innovation sustainability in the context of addressing sustainable development targets. This leadership would have a profound demonstration effect on promoting the development of ecology and economic sustainability around the world. Innovation is no longer equivalent to R&D, and there are many other types of non-R&D innovation activities [6]
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