Research On The Influence Of GVC Embedment Position And Industrial Agglomeration On Enterprise Innovation

At present,Chinese enterprises are not only in the global value chain production system,but also in the production environment of domestic industrial agglomeration.Because the embedded GVC status of domestic enterprises may indirectly affect the effect of domestic industrial agglomeration on enterprise innovation by changing the way of obtaining labor,knowledge,technology and other resources and the strategy of production division and cooperation.Therefore,in order to maintain high-quality development and improve enterprises’ innovation ability,it is necessary to find out the influence of the embedded GVC status of Chinese enterprises in actively participating in a wider range of international production network.In other words,the interaction between the embedded GVC status of enterprises and industrial agglomeration on enterprise innovation is worth discussing.As is known to all,innovation is affected by many factors.The reason why this paper selects data from 2000 to 2007 is that this period just happens to be the period of global value chain embedding after China’s ENTRY into WTO,the period of rapid industrial agglomeration and the rapid development stage of "open market for technology".On the other hand,considering that the industrial enterprise database in2008 and after cannot be effectively matched across years due to the change of statistical caliber and the absence of key variables,the GVC embedded status index of enterprises cannot be measured.Therefore,this paper uses the Database of China Industrial Enterprises,Customs,WIOD and Peking University Patent from 2000 to2007.From the micro level of manufacturing enterprises,the number of patent applications of enterprises is used to measure the innovation of enterprises,the GVC position index is used to measure the position of enterprises embedded in GVC,and the degree of agglomeration is measured by the local agglomeration index.This paper discusses whether the improvement of Chinese manufacturing enterprises’ embedded GVC division of labor weakens or strengthens the positive effect of domestic industrial agglomeration on enterprise innovation under the interaction process of participating in global value chain and domestic industrial agglomeration.The empirical results show that the improvement of GVC division of labor status of enterprises can promote innovation capacity,but also weaken the innovation spillover effect caused by agglomeration.And this conclusion does not change with the way of trade and ownership of enterprises.Through heterogeneity analysis,it can also be concluded that the participation of foreign-funded enterprises and general trade enterprises in GVC has a stronger interactive effect on the innovation effect of local industrial agglomeration,whereas the interaction effect of state-owned enterprises and processing enterprises is low.Finally,this paper also conducts a mechanism analysis on the regression results,and finds that the increase of GVC status of firms isolated the positive role of scale economy,labor sharing and knowledge spillover on innovation,but has no effect on the positive external effect of intermediate input,and had no effect on the positive external role of intermediate input.The above conclusions are helpful for local governments to rationally formulate innovation-driven strategies based on the original local industrial base,improve enterprises’ innovation ability,optimize industrial structure,realize industrial upgrading,build high-quality industrial clusters.