Kaizhong Yang and Ying Xu
This study aims to test the relationship between city industrial diversity and enterprises development in an urban region, in order to investigate the effect of diversified urban…
Abstract
Purpose
This study aims to test the relationship between city industrial diversity and enterprises development in an urban region, in order to investigate the effect of diversified urban environment on the development of urban enterprises and its changing trends.
Design/methodology/approach
The research adopts a quantitative approach and the data are from a data bank of industrial censuses which contains data of all firms in Beijing for three years. All data concerning diversities were counted.
Findings
The main findings of this research are that industrial differences in entrepreneurship activities were mainly related to industrial diversities. Different from the relationship of development of regional enterprises based on the development of regional economy growth, the enterprises development of different industries lies in the intra‐ and inter‐industrial diversities.
Practical implications
Intra‐ and inter‐industrial diversities can contribute to entrepreneurship activities in a region. It is therefore argued that one of the effective ways to boost entrepreneurship is to advance the industrial diversities of a region.
Originality/value
The originality of this research is two‐fold. A modified conceptual framework is proposed to test the relationship between entrepreneurship and diversified industrial structure; it is the first empirical study concerning regional industrial diversities and enterprises in China.
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Kaizhong Yang and Ying Xu
This paper aims to investigate the patterns of and reasons for regional differences in entrepreneurship among Chinese provinces (excluding Hong Kong and Taiwan).
Abstract
Purpose
This paper aims to investigate the patterns of and reasons for regional differences in entrepreneurship among Chinese provinces (excluding Hong Kong and Taiwan).
Design/methodology/approach
The paper employs a linear regression model to examine determinants of regional entrepreneurship in China.
Findings
Evidence suggests that provincial differences in entrepreneurship were directly related to local business growth, but not to factors such as level of local business development, urbanisation rate, level of market economy, level of salary and ratio of unemployment. The differences among economic growth in various regions contributed directly to differences in entrepreneurship.
Research limitations/implications
There is a need to determine the spatial patterns of entrepreneurship by using panel data in a more sophisticated econometric model. A further investigation of regional entrepreneurship in China is planned for the near future.
Practical implications
Active entrepreneurship in a region can contribute to the economic growth of the region, leading to more active enterprising activities. It is therefore argued that one of the effective ways to boost entrepreneurship and small business development is to advance the economic growth of a region.
Originality/value
The paper adopts an industrial location perspective on determinants of business growth and its links with regional entrepreneurship.
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Baoping Ren and Wei Jie
Constant or decreasing returns and increasing returns to scale are two kinds of mechanism in economic growth. The goal of supply-side structural reform is to promote the…
Abstract
Purpose
Constant or decreasing returns and increasing returns to scale are two kinds of mechanism in economic growth. The goal of supply-side structural reform is to promote the establishment of the mechanism with increasing returns to scale. The paper aims to discuss this issue.
Design/methodology/approach
This paper argues that the overall economic structure of the developing economy has been divided into the sector of constant or decreasing returns to scale and the sector of increasing returns to scale due to the dual economic structure. Among them, the supply-side structural reform is mainly to reduce the sector of decreasing returns to scale and increase the sector of increasing returns to scale. Based on the hypothesis of such two-sector economic structure in the supply side of developing economies and on the industrial data, this paper empirically tests the returns to scale of China’s supply structure. The result suggests that so far the sector of constant or decreasing returns to scale dominates the supply structure of China’s economic growth, which results in the state of decreasing returns to scale in China’s overall economy.
Findings
Therefore, to realize the long-term sustained growth and transformation of the development pattern of China’s economy, the authors must carry out the supply-side structural reform, vigorously develop the modern industrial sectors characterized by modern knowledge and technology, and promote the development of an innovation-driven economy.
Originality/value
Besides, the authors must accelerate the transformation from traditional industrial sectors to modern industrial sectors, actively promote China’s industrial structure toward rationalization and high gradation, as well as build a modern industrial system so as to facilitate the formation of the mechanism of increasing returns to scale and accelerate the transformation of the driving force of China’s economic growth.
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Ludan Wu, Dylan Sutherland, Xinghao Peng and John Anderson
Cities are host to many of the world’s knowledge intensive research and innovation clusters. As such, they are likely to be attractive locations for emerging market multinational…
Abstract
Purpose
Cities are host to many of the world’s knowledge intensive research and innovation clusters. As such, they are likely to be attractive locations for emerging market multinational enterprises (MNEs) seeking to engage in knowledge seeking “springboard” type firm-level catch-up strategies. The purpose of this study is to therefore explore whether city-based research-intensive clusters containing deep pools of location bounded (i.e. “sticky”) knowledge are a stronger driver for greenfield research and development (R&D)-related FDI projects for Chinese MNEs than they are for developed market MNEs.
Design/methodology/approach
The authors use logistic modelling on 97,163 worldwide greenfield FDI projects to explore the relative likelihoods of Chinese MNEs engaging in R&D-related greenfield (i.e. “strategic asset seeking”) FDI projects as well as how city type (global or research-intensive cluster city) moderates this relationship for Chinese MNEs.
Findings
The authors find that Chinese MNEs are more likely to engage in overseas R&D FDI projects (compared with other types of project) than DMNEs and that research-intensive city clusters hold a stronger attraction for Chinese MNEs than developed market MNEs.
Research limitations/implications
The authors discuss how the research contributes to the debate on emerging market MNE catch-up theory, as well as that on sub-national city location choice, by highlighting the growing importance of sub-national geography to understanding strategic asset seeking related greenfield FDI.
Practical implications
Sub-national city location choice is an important driver of strategic asset seeking FDI for Chinese MNEs, one that both national and local city level policymakers should pay attention to.
Social implications
Chinese FDI via aggressive mergers and acquisitions to acquire key technologies has been restricted in recent years. Policymakers must consider whether they may also wish to restrict Chinese greenfield FDI in R&D-related projects, which now exhibit a pronounced upward trend.
Originality/value
The authors highlight the growing importance of sub-national geography to understanding strategic asset seeking related greenfield FDI in Chinese MNEs (and how it plays, more generally, a central role in their strategies).