Digital silk road, Silicon Valley and connectivity

Abstract

ABSTRACTIn this article, we provide an up-to-date analysis of innovation and the Belt and Road Initiative (BRI). We argue here that the confluence of technology and the Silk Road is not new. During the Ancient Silk Road, China’s indigenous innovations diffused to other economies (the first process of diffusion). What is new this time is that much of the innovations may have originated in Silicon Valley, California. However, China adapted, metamorphosized some such inventions and at the same time independently created many technology business models. Through the New Silk Road, China may carry out a second diffusion process and spread innovations from Silicon Valley to other BRI countries. To enrich the study of the Digital Silk Road, we construct a formal, economic model of a connected region and show how this can affect Internet start-ups and their entrepreneurs.We are very grateful for many constructive comments provided by two anonymous referees and an editor. We have improved and revised our article according to their very useful suggestions. All errors, however, remain ours.