Shang Chen is currently a PhD student at School of Business and Management, Queen Mary University of London. Before joining Queen Mary, Shang obtained his Master of Science in Computer Information Systems at Boston University. He holds a bachelor’s degree with two majors in Management Information System and Business Economics.
Primary Supervisor: Professor Lutao Ning
Secondary Supervisor: Professor Roxana Gutierrez-Romero
FDI Spillovers, Governmental Subsidy, and Green Innovation: The Role of Industrial Agglomeration in China
With the global environmental issues getting more critical, green innovation that binds technological and environmental benefits together gets increasing attention. Compared to general technological innovation, green innovation shares the same features while adds an extra character: contributing to environmental improvements which eventually benefits the society. External drivers such as FDI and governmental subsidies have been extensively analyzed on general technological innovation. Yet, little is known about such effects on green innovation if considering the environmental externalities. Moreover, previous studies have concluded that the specialized industrial structure can deepen the technology tree within an industry, while a diversified industrial structure can introduce breakthrough technological innovation. But will such moderation effects also apply to green innovation is also unknown. Therefore, this research aims to explore the role of specialized and diversified industrial agglomeration on the effects of FDI knowledge spillovers and governmental subsidies on regional green innovation. Specifically, the research wants to address the following relationships:
1. What is the impact of knowledge spillovers from FDI on green innovation?
2. What is the impact of governmental subsidies on green innovation?
3. How does specialized and diversified industrial agglomeration moderate the effects of FDI spillovers and governmental subsidies on green innovation?
Thus, it can contribute to the strand of literature on regional innovation, as well as sustainable development by bringing insights on setting suitable policies to stimulate green innovation.