Innovation Capacity Comparison of China’s Information Technology Industrial Clusters: The Case of Shanghai, Kunshan, Shenzhen and Dongguan

Abstract

The aim of this paper is twofold: first, to explore the effects of industrial cluster on innovation capacity, and second, to study the impact of external resources on firms` innovation capacity especially under Chinese regional economic policy. This is a critical subject that lacks sufficient analysis. Through years of investment and effort, several IT industrial clusters have developed in China with Shanghai, Kunshan, Shenzhen and Dongguan the better-known examples. These IT industrial clusters were chosen for an empirical study on the disparities in China`s innovation capacity. All of the innovation capacity determinants at these four IT industrial clusters were different. It was confirmed that the regional dimension of Chinese economic policy affects firms` innovation capacity in the industrial cluster. The results also show whether the regional policy differences will moderate the cluster effect on innovation.