Huang, "The dynamics of regional advantages and disadvantages: Beijing as a center of high-tech entrepreneurship," 2008

Fei Huang, Ph.D

Abstract (Summary)

In this study, I study what determines entrepreneurship development in a given industry. I argue for a dynamic view of "regional advantage". When considering the entrepreneurship development in a broader context and its relationship with the globalization, localization does not mean that only the local and national institutions exercise strong regulatory control over the entrepreneurship development process, entrepreneurship can be empowered and transformed by its linkages to the institutions in diverse social contexts. Thus regional disadvantages can be overcome under certain conditions.

Specifically, I ask why quite a few competitive firms could emerge in China's internet industry and are growing into world class companies despite Beijing's disadvantages in nurturing private firms. My account of this puzzle is that the competitiveness of China's internet industry is determined by its connection with the entrepreneurship institutions abroad (including educational, professional, and financial institutions). This industry is populated by the returnee firms, the domestic entrepreneurship institutions are underdeveloped in relation to the requirement of internet industry but the returnee entrepreneurs' access to some key western institutions has given them an advantage.

Advisor: Aronson, Johnathan