Research On Formative Mechanism Of Technological Innovator Network Based On Comparative Case Study Of China And Switzerland

This study sets out to explore the formative mechanism of firm's technological innovator network (TIN) under different national contexts. It is expected to induce theory by comparing how national contexts shape firms'innovator networks in different countries.This study adopts case study methodology with quantitative measuring technique and multiple-case embedded design. Three medium-and-high-tech manufacturing companies with strong technological innovation performance located in Sichuan, China and three in Zurich, Switzerland are selected for comparison. An analytical framework based on national innovation system approach, social network theory, and transaction cost theory is constructed, and a cross case study to examine the formative mechanism of firms'TIN in different national context is conducted.The study found that in the Chinese cases both closed and open networks exist which reflects the transitional characteristics of China's national innovation system, and in the Swiss cases, firms'TINs have shown more similarities as open networks which resulted from the mature/well developed national innovation system of Switzerland in which firms' technological innovation is well-facilitated. The study found a major difference in the role of government in the development of TINS in respective case firms. In the Chinese cases, the role of government is to participate, guide and finance firm's technological innovation activities, and to provide favorable and supportive policies and special administrative services so as to create good microclimate for selected firms to develop their TINs and improve technological innovation performance. In the Swiss cases, the role of government is to act as bridge between different actors by transferring information in the TIN and by framing general policies for all the firms and to create good macro environment for firm's innovation.To generalize and conclude, this study argues that the micro evolution of firms' TINs is influenced by the macro dynamic development of national contextual factors, in other words, by the development of the nature and characteristics of national innovation system. In a country with well-developed national innovation system which boasts of a well developed education system, high-qualified human resources, and well-established IPR regime, firms'TINs are open thanks to relatively lower transaction cost of external cooperation. In a country with transitional/learning national innovation system with relatively less/well-developed education system, insufficient high-qualified human resources, and weak IPR regime, firm's TINs tend to be closed due to relatively higher transaction cost of external cooperation. But when the national contextual factors partially improve, the transaction cost of external cooperation also partially decrease, and firms are likely to start forging external relationship for technological innovation which results in firms' TINs becoming partially open. Therefore, fostering and nurturing of dynamic innovator networks at micro level are clearly linked to the influence of the national context, that is, the strengths and weaknesses of the national innovation system at the macro level.Despite some limitations which can be attributed to the limitations imposed by transaction cost theory, the study makes a number of contributions in the area of appreciative theories in systems of innovation. The evidence from the cross case studies in two countries selected adds new knowledge towards better understanding of the complex nature of emerging/ learning economies and national innovation systems in transition. The study helps to understand the dynamics of macro factors at national level and their influence on firm's behavior at micro-level. It also reinforces the argument of the national innovation system theory that innovation process is a complicated interaction between macro and micro factors. Thus, the main policy implication is clear:building robust national and regional innovation systems is imperative to create conducive environment for firms to foster and develop dynamic and vibrant open technological innovator networks.