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This paper aims to introduce a sociological view to analyze the Economic and Technological Development Zones (ETDZs) in China. The ETDZs are established to foster concentrated regional economic development. Currently, there are 219 national level ETDZs throughout the country, and they account for more than 10% of China’s total GDP. Given the scale of the Chinese economy, the economic significance of the ETDZs indicates an important phenomenon for better understanding.

This paper conceptualizes the Chinese ETDZs with sociology concepts of place, institutional logics and habitus.

The sociological view centers on how the ETDZs can naturally evolve with the participation of firms. The authors show that firms operating in the ETDZs can unintentionally alter the dynamics of the policy environment. A process model of place, logics and practice is developed to encapsulate these ideas.

Conventional research on the connections between Chinese Government policies and business operations has been largely conducted under a political economy view which outlines a top-down logic (policymaking, followed by firms’ strategic response). The authors move away from this dogma by introducing a sociological view of the ETDZs. This new view highlights that a government-initiated policy environment in China can also evolve when firms are seeking to blend into the regulatory system, instead of trying to shape the coercive arrangements to suit their best interests.

The aim of this paper is to highlight the importance of industrialization and its role in realizing technological innovation leading towards economic development. China has made a 15‐year plan to develop an innovation driven economy, for which it requires a strong and a structured industrial base. An overview of China's industrial strategy has been provided, followed by the challenges and the possible measures needed to be taken in order to achieve its long‐term goals.

Phenomenology, exploratory research and inductive approach for analysing management of technological innovation, industrial clusters and economic development, and, China's innovation plan.

China has emerged as the fastest developing economy and is currently in the transition stage from factor driven to investment driven. In order to stabilize and move towards the investment driven and then to the innovation‐driven stage, China requires a strong industrial base. In order to do so, China needs to cope with the challenges of: a weak system of intellectual property management: lack of skilled and technical labour and adequate financial resources: slow pace in competence and competitiveness upgrading: a weak educational system: industrial pollution; and, lack of basic research.

The paper serves as a guide to students and researchers by presenting a summary of global trends regarding technological innovation, industrial clusters, and China's industrial policies to develop an innovation driven economy.

This study aims to examine two innovation zones in China, including the Suzhou Industrial Park and Tianjin Eco-city, to gain a comprehensive understanding of city locations attributes and its relationship to inward foreign direct investment (FDI) from multinational enterprises (MNEs) in innovation zones embedded in nonhub cities in China.

This research incorporates two site visits and in-depth interviews with 39 personnel working with innovation zones. Thematic analysis is used to analyze interview data and documents.

The results highlight that cities can use innovation zones as a strategy to build high scale knowledge community precincts to connect MNEs and other global actors. As an important institutional feature of city locations, innovation zones increase within-city connectivity and connect cities in global networks resulting in cross-city connectivity to attract FDI from MNEs. From a dynamic knowledge community perspective, this research also compares active and passive approaches toward building knowledge communities and identifies several elements of knowledge communities within innovation zones in China.

The research results could be further explored in other institutional and economic contexts, to understand the interplay of city locations, FDI and innovation zones, and the dynamics of building knowledge communities.

This research has several implications for policymakers and administrators who work with municipal economic development and the development and enhancement of innovation zones. It offers recommendations for MNEs to consider where to make foreign investments and the advantages innovation zones may offer to support FDI.

This research contributes to the literature related to economic development and how nonhub cities can attract FDI and join global networks. It offers empirical insights drawn from two successful innovation zones located in nonhub cities in China.

This chapter studies the technical efficiencies of Chinese airports by using a meta-frontier production function model which accounts for airports in different regions accessing different technologies. Our empirical results show that the technical efficiency scores of airports and provincial output in the coastal region are higher than their counterparts in the inland region. However, the technical efficiency scores of airports and provincial output in inland region are steadily increasing while the counterparts of airports and provincial output in coastal region are slowly declining. In addition, our analysis of provincial efficiency changes shows that airport productivity has a positive and statistically significant effect on the technical changes of provincial output. Our results partially confirm the success of the government policy of promoting airport construction and development in the western inland region.

The purpose of this paper is to explore the relationship between medium‐large firms' industrial performance, territorial factors and local development policies.

The paper is an empirical econometric investigation based on a panel dataset of county‐level data, carried out in the Guangdong Province for the period 2000‐2008.

Results suggest a positive and significant relationship between policies at the local level and business performance. The most important determinants of industrial performance appear to be development zones and specialized towns – on the policy side – as well as the presence of urban areas, investment in innovation and FDI. Given the complexity of the relationships, further research is called for in order to build more evidence for this and other Chinese provinces.

The analysis confirms the initial hypothesis that business excellence can be influenced by the specific characteristics of the territories where firms are located, among which there might be government policies aiming at local development and encouraging a better business environment.

Relevant to the policy‐making process, results suggest that business excellence should not be viewed as only a matter of business strategies. It can be a result of territorial excellence and effective local development policies.

In the international debate there are very few papers testing the relationship between policies and industrial performances in China. Even fewer explore this relationship at the local level. This paper offers a unique county‐level perspective and in‐depth view on local industrial policies.

The objective of this chapter is to provide a first assessment on the evolution of spatial distribution of foreign firms in China.

We examine the overall changes in the location of foreign firms in China over the period 1999–2009. Then, we distinguish two time periods, 1998–2001 and 2002–2009 so as to analyze whether foreign firms’ agglomeration across regions has changed significantly after the China’s entry into the WTO (2001) and the first launch of the Chinese government policies to develop western internal areas.

Our analysis suggests that foreign-invested enterprises (FIEs) with higher foreign capital shares are more geographically clustered in coastal regions than other enterprises with lower foreign capital shares. This group with the highest intensity of foreign involvement in firm capital also experienced the most relevant changes over the decade of our analysis becoming more localized between the core-periphery divide (coastal provinces and the rest of mainland China).

The main limitation refers to poor data availability, data matching problems, and measurement errors in the database used, as highlighted by Nie, Jiang, and Yang (2012).

A general analysis of location patterns and the role of public policies may inform foreign companies in their entry strategy in the Chinese market.

Very few studies have explored location patterns with detailed geographical data and, at the same time, with data disaggregated by foreign ownership shares.

CEO incentive contracts are commonplace in China but their incidence varies significantly across Chinese cities. We show that city and provincial policy experiments help explain this variance. We examine the role of two policy experiments: the use of Special Economic Zones (SEZs) to attract Foreign Direct Investment (FDI), and the privatisation of State-Owned Enterprises (SOEs). The introduction of SEZs is found to be uncorrelated with the prevalence of CEO incentive contracts. However, firms are more likely to use such contracts in areas that saw rapid SOE privatisation, irrespective of the firm’s own current ownership status and irrespective of the size of the SOE sector in the late 1970s. The positive effect of privatisation is robust to various estimation techniques and model specifications. These findings suggest that domestic privatisation policies have been more influential than FDI in driving the expansion of incentive contracts in China.

The purpose of this paper is to attempt to investigate the location determinants of foreign direct investment (FDI) and examine the impact of WTO accession.

Based on an 11‐year panel dataset on FDI and urban characteristics across Chinese cities, the paper employs a random effect panel data model to study the impact of WTO accession on FDI.

The estimation results provide supportive evidence on WTO accession effects on FDI location. The importance of agglomeration economies increases, while the influence of market size and government preferential policies has decreased after WTO accession. Cheap labor plays an increasingly important role, but labor quality and roadway transport conditions lose their significance.

This study contributes to the existing literature by identifying the WTO accession effects on FDI location choices in a transitional economy.