Threshold Effect of Knowledge Accumulation between Innovation Path and Innovation Performance: New Evidence from China’s High-tech Industry

Abstract

In the process of transitioning from closed to open innovation, regions in developing countries need to understand how to choose the most effective path within the complex innovation system while considering their own innovation factors. Based on provincial panel data from China’s high-tech industry and the improved dynamic threshold model, we introduce the threshold of knowledge accumulation (KLA) into the non-linear mechanism between innovation paths and innovation performance to compare the dynamic threshold effect and its heterogeneity. This research provides interesting insights into innovation paths, showing that the relationship between the innovation path and innovation performance is significantly influenced by the threshold effect of KLA. As the level of KLA strengthens, its effects on each innovation path change. Overall, this article shows how KLA affects the relationship between the innovation path and innovation performance. The article concludes with a discussion of the implications of these insights for innovation management and policy.