Abstract
Abstract This study aims to understand how different types of global engagement influence firms’ innovation, and also to explore the boundary condition of the global engagement-innovation relationship. We use 3-year panel data from the National High-growth Firms in High-tech Zones Database to test our hypotheses. Our finding shows that foreign equity has an inverted U-shaped effect on firm innovation, while exporting positively affects innovation. Local RD while academic collaboration flattens the effects of foreign equity. Our study provides an integrated framework for analyzing different influence mechanisms of the two types of global engagement. We also construct a contingency model by confirming that firms’ local R&D activities greatly moderate firms’ international innovation process.
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