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Network Effects, Cooperation and Entrepreneurial Innovation in China

In English

Författare

  • Sonja Opper
  • Victor Nee

Summary, in English

The rapid rise of an innovative private manufacturing economy in China challenges standard economic explanations of growth, which typically assume the existence of well-defined formal institutions such as property rights and company laws safeguarding investor and creditor interests. We highlight the social structure of cooperation that enables innovative activity in private manufacturing firms when formal property rights protection remains weak. We show how network effects linked to inter-firm cooperation in industrial clusters allowed private entrepreneurs to quickly develop reliable business norms to reduce the inherent risk of malfeasance and contract breach in formal and informal collaborative efforts. Survey data from a sample of 700 manufacturing firms located in China’s Yangzi Delta region confirms that both formal and informal types of inter-firm collaboration are effective, though in different areas of innovative activity.

Publiceringsår

2015

Språk

Engelska

Sidor

283-302

Publikation/Tidskrift/Serie

Asian Business & Management

Volym

14

Issue

4

Dokumenttyp

Artikel i tidskrift

Förlag

Palgrave Macmillan

Ämne

  • Economics and Business

Nyckelord

  • China
  • informal cooperation
  • formal R&D agreements
  • entrepreneurship
  • innovation
  • network effects

Status

Published

ISBN/ISSN/Övrigt

  • ISSN: 1476-9328