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This article studies how three sets of regional factors—knowledge, agglomeration, and openness—impact and interact differently with startups and incumbent firms in their innovative capacity building. Based on a large dataset of Chinese high‐tech firms, regression analysis shows that the speed of growing startup innovative capacity relies positively on regional knowledge stock and localization economies...
Research Summary
This article examines the influence that intra‐firm manufacturing linkages have on knowledge exploration outcomes in foreign subsidiaries. Although it is common to focus on the importance of keeping exploratory units separate from other firm operations to encourage a more diverse range of solutions, I explore the role that strong manufacturing outflows play in encouraging both the...