Regional innovation and performance

Abstract

Purpose – This paper aims to draw on a number of indicators of innovation to evaluate and compare two central regions – Hubei and Hunan – with three leading regions of China – Beijing, Shanghai and Guangdong. Design/methodology/approach – The paper focuses on absorptive capacity at the level of domestic regions of China, using data on R&D expenditures, human resources in higher education and in high-tech industries. The paper uses social network analysis to investigate innovation networks based on patents from the SIPO and USPTO. Findings – Results indicate that, in Hubei and Hunan, R&D expenditures do not translate into as many innovative outputs as in the coastal and Southern regions. Moreover, high-tech industries contribute towards a relatively low proportion of the regional outputs of Hubei and Hunan, where especially the electronics industry is very poorly represented. Findings also suggest that Hubei and Hunan have a relatively limited access to foreign technologies embedded in ties with international partners. By contrast, the more advanced three regions tend to develop collaborative activities across national boundaries to a higher extent than across regional boundaries. Research limitations/implications – The analysis of China's regional innovation system has implications for research on national innovation systems. Policy-makers can benefit from the comparative analysis of regions. Originality/value – The study is primarily exploratory, and the findings contribute to the literature and ongoing discussion on data sources and methods for the analysis of regional innovation.