Institutional Political Connection, Innovation Alliance and Applied Research Institutes’ Innovation – Evidence from China’s New Research and Development Institutes

Huidong Peng ( South China Business College, Guangdong University of Foreign Studies, 181 Liangtian Middle Road, Guangzhou, Guangdong Province 510545, China )

https://doi.org/10.37155/2972-4813-gep0304-4

Abstract

Applied research institutes’ innovation performance significantly affects developing countries’ technology progress and sustainable development. One important factor affecting these institutes’ performance is political connection. Current studies mainly explore the effects of personal political connection (ties with the government linked by individuals). Little research investigates how institutional political connection (ties formed by state ownership) might influence applied research institutes’ innovation performance. This research attempts to fill this gap. Drawing on a five-year panel data set of 138 applied research institutes in China, this research finds that institutional political connection negatively affects applied research institutes’ innovation performance perhaps due to the over-embeddedness in politics. It also finds that innovation alliance’s number and diversity positively moderate institutional political connection’s effects on applied research institutes’ innovation performance. This research contributes to literature on political connection and literature on applied research institutes.

Keywords

Political connection; Innovation alliance; Applied research institute; Technological innovation

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References

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