Making of an innovative economy: a study of diversity of Chinese enterprise innovation

PurposeThis research examines the effects of firm ownership and size on innovation capability using data from the World Bank China Enterprise Survey (WBCES), which provides directly measurable innovation-related variables. Key consideration is given to the role and innovation capability of state-owned enterprises (SOEs) compared with domestic and foreign private enterprises in the Chinese economy.Design/methodology/approachIn its quest for technological self-reliance and a new developmental path, China is focusing on its enterprise innovation capability.FindingsThe findings suggest that SOEs and domestic private enterprises are similar in terms of innovation participation but differ in terms of innovation diversification, which implies ownership-specific innovative advantages. In general, the authors find that SOEs are more innovative with respect to processes innovation but less so with respect to product, management and promotion innovations. Foreign-owned enterprises are superior in all types of innovation except product innovation.Research limitations/implicationsThe authors also find that size is an important determinant of innovation capability, with the effect varying depending on location and industry. Moreover, the joint effect of firm ownership and size on innovation declines with increasing size. These findings provide new insights into the evaluation of China's major policies.Originality/valueThis research examines the effects of ownership and size on enterprise innovation capability, using the WBCES (2013) data, which include direct measurable innovation related variables.

Financial Constraints and R&D Investment: The Moderating Role of CEO Characteristics

How CEOs with different characteristics act differently on R&D investment under the condition of financial constraints is an important but understudied question towards firms’ sustainable innovation. Employing the dataset from China-Enterprise Survey 2012 of the World Bank, this study tests the impact of financial constraints on firms’ R&D investment and the moderating role of CEO characteristics. Empirical results show that: (1) firm’s financial constraints have a significant restricting effect on their R&D investment; (2) internal financial constraints have no significant restricting effect on R&D investment for firms with female CEOs in comparison with firms with male CEOs, while the external financial constraints have a significant restricting effect on R&D investment for both groups. (3) CEO experience has a non-linear moderating effect on the relationship between financial constraints and a firm’s R&D investment. When the accumulated experience is overloaded, the positive moderating effect of CEO experience begins to decline and even become negative. Robustness tests further confirm these empirical findings. This study directly contributes to the literature of financing innovation and top management team’s impact on firms’ sustainable innovation, and generates insights on firms’ R&D management under the condition of financial constraints.

The Value of Business–Government Ties for Manufacturing Firms’ Product Innovation during Institutional Transition in China

This study investigates how firms invest in building and maintaining business–government (B–G) ties when they aim to innovate in regions where, due to institutional transitions, institutional contexts differ remarkably. Using data from the China Enterprise Survey of the World Bank, empirical findings suggest that the influence of B–G ties on Chinese firms’ product innovation is different in distinctive institutional contexts in China. More specifically, during institutional transition, B–G ties become less efficient for facilitating product innovation when regional legal institutions and infrastructural supporting systems in a region are more stable, fair, and efficient. By contrast, during institutional transition, a positive effect of B–G ties on firm product innovation in a region becomes more significant when financial systems are relatively advanced. In addition to this, the value of B–G ties for firm product innovation appears to be more stable when business regulation develops within subnational regions.

Chinese employer associations, institutional complementarity and countervailing power

Prior to 2011 the China Enterprise Confederation (CEC) was the only employer association recognized by China’s government. Drawing on interviews with staff from employer associations, employers and state officials, this study clarifies the role of Chinese employer associations, with the focus being on the CEC. The study finds that the Confederation is a quasi-state agency that undertakes many of the activities conducted by employer associations in developed economies. It also finds that the demise of the CEC’s monopolization of employer representation can be attributed to its inability to act as an agent of countervailing power and its inability to sustain a complementary relationship with the social partners that are suited to the newly emergent employment relationship being constructed in China.

Research on Power User Electrical Energy Data Acquire System Based on Micro-Power Wireless Technology

Currently, micro-power wireless communication technology used in power user electrical energy data acquire system have some problems such as transport distance, power, data rate, antenna length, interaction (standard), deployment environment, stray radiation and so on. This paper proposed a micro-power wireless communication module which meets the State Grid Corporation of China Enterprise Standard Q/GDW 1374.3-2013 was designed by the author,and the key technology and major problems were researched and analyzed.