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ID: 171829

China’s Evolving Role in Regional Production Networks: Evidence from the ICT Industry / Chan, Sarah

Chan, Sarah	Journal Article
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Summary/Abstract

China’s accession to the WTO in 2001 and the subsequent liberalization of its FDI and trade policies have boosted the country’s exports and facilitated its improved participation in regional production networks. This paper builds on the existing literature on production networks by examining some of the recent structural changes in China’s intermediate goods trade with East Asia. Chinese policies to promote technological progress and indigenous innovation have been instrumental in bringing about such change, most of which can be captured by shifts or movements in the nation’s intra-industry trade index for intermediate goods. Two significant findings emerge from the empirical exercise: first, China is progressively reducing its reliance on import of intermediate goods for production and export; and second, the country remains integrated with East Asian economies in several technology-intensive sectors such as machinery and electronic devices.

Key Words

China ; ICT Industry ; Regional Production Networks

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ID: 119916

Emerging geography of technological innovation in China's ICT i: region, inter-firm linkages and innovative performance in a transitional economy / Wang, Cassandra C; Lin, George C S

Wang, Cassandra C	Journal Article
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2013.

Summary/Abstract

This study critically evaluates the relevance of the existing theory of technological innovation to the case of China's information and communications technology industry. Based on a large-scale questionnaire survey conducted in China's three most important city-regions, namely, Beijing, Shanghai and Shenzhen, where the core of China's information and communications technology industry is located, this study reveals a significant regional variation in technological innovation in a political economy undergoing marketisation and globalisation. This research has found no significant relationship between the innovative performance of firms and the extent of production linkages; nor was there a significant knowledge exchange among firms. A further analysis has identified the significant role played by government purchases, research and development capital input and export propensity in the process of technological innovation. The findings of this research cast doubts over the prevailing theory of 'new economic geography' in which soft and unbounded relational assets have been overemphasised at the expense of some solid and bounded actors and agents that are pivotal to technological innovation in a developing economy.

Key Words

Technological innovation ; China ; ICT Industry ; Inter - Firm Linkages ; Intra - Firm Attributes

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