Seoul Journal of Economics
[ Article ]
Seoul Journal of Economics - Vol. 36, No. 2, pp.165-191
ISSN: 1225-0279 (Print)
Print publication date 31 May 2023
Received 16 Dec 2022 Revised 09 Jan 2023 Accepted 11 Jan 2023
DOI: https://doi.org/10.22904/sje.2023.36.2.001

Resistant, Path Creation, or Resilient? An Empirical Study of 87 Innovative Cities Worldwide

Chan-Yuan Wong ; I-Kim Wang
Chan-Yuan Wong, Corresponding author, National Tsing Hua University, Institute of Technology Management, No 101, Sec. 2, Kuang-Fu Rd, 30013, Hsinchu, Taiwan wcy@mx.nthu.edu.tw
I-Kim Wamg, Suffolk University, Sawyer Business School, 73 Tremont Street Boston, MA 02108, United States iwang@suffolk.edu

JEL Classification: O34; R10

Abstract

This study proposes rigorous concepts of resilient, resistant, and path-creation behaviors for urban patenting and innovation studies. The study examines the responses of cities with different regional innovation system (RIS) characteristics when facing a crisis. The concepts allowed us to identify resilient cities based on crisis responses and RIS characteristics. Our study identified cities exhibiting resilient behaviors, such as Taipei and San Jose, demonstrating the ability to recover from a crisis in terms of patenting and sustain high levels of performance in localized learning. For cities with resistant behaviors, such as London, we observed that their momentum for patenting decreased, although they were endowed with RIS performance comparable to the resilient cities. Cities such as Shenzhen exhibit path-creation behaviors, demonstrating the ability to transform and achieve performances on par with the resilient cities. Unformed RIS cities demonstrate low patenting activities and have yet to configure a base for technological activities. The concept and formulated quantitative process to distinguish cities performing in patenting lay new ground for studies on urban economic resilience.

Keywords:

Resilient, Patenting Cities, Cluster Analysis, Taipei, London, Shenzhen

Acknowledgments

The authors would like to acknowledge the support by Laboratory Program for Korean Studies through the Ministry of Education of Republic of Korea and Korean Studies Promotion Service of the Academy of Korean Studies (AKS-2018-LAB-1250001). The supports from National Science and Technology Council of Taiwan (111-2410-H-007-027-MY2) is also acknowledged.

References

  • Asheim, B. T., Boschma, R., and Cooke, P. “Constructing regional advantage: Platform policies based on related variety and differentiated knowledge bases.” Regional Studies 45(No. 7 2011): 893-904. [https://doi.org/10.1080/00343404.2010.543126]
  • Boschma, R. “Towards an evolutionary perspective on regional resilience.” Regional Studies 49(No. 5 2015): 733-751. [https://doi.org/10.1080/00343404.2014.959481]
  • Boschma, R., Balland, P. A., and Kogler, D. F. “Relatedness and technological change in cities: the rise and fall of technological knowledge in US metropolitan areas from 1981 to 2010.” Industrial and Corporate Change 24(No. 1 2015): 223-250. [https://doi.org/10.1093/icc/dtu012]
  • Cooke, P. “From technopoles to regional innovation systems: the evolution of localised technology development policy.” Canadian Journal of Regional Science 24(No. 1 2001): 21-40.
  • De Propris, L., and Bailey, D. “Pathways of regional transformation and Industry 4.0.” Regional Studies 55(No. 10-11 2021): 1617-1629. [https://doi.org/10.1080/00343404.2021.1960962]
  • Ditzen, J., Karavias, Y., and Westerlund, J. “Testing and estimating structural breaks in time series and panel data in stata.” The Stata Journal 21(No. 3 2021): 687-707. [https://doi.org/10.1177/1536867X211045560]
  • Ferreira M. E. A case of resilience: the footwear cluster of Northern Portugal, In Baycan, T. and Pinto, H. (Ed.), Resilience, Crisis and Innovation Dynamics, Edward Elgar: Cheltenham, 267-288, 2001.
  • Godinho, M. M., Mendonca, S. F., Pereira, T. S. Towards a Taxonomy of Innovation Systems. Universidade Tecnica de Lisboa: Mimeo, 2006.
  • Harris, J. L. “Bridging the gap between ‘Fin’ and ‘Tech’: The role of accelerator networks in emerging FinTech entrepreneurial ecosystems.” Geoforum 122(2021): 174-182. [https://doi.org/10.1016/j.geoforum.2021.04.010]
  • Intarakumnerd, P. Mismanaging innovation systems: Thailand and the middle-income trap. Routledge: Oxon, 2017. [https://doi.org/10.4324/9781315150765]
  • Irrera, A. and Krouse, S. Race to be the big wheel in fintech. Financial News, October 29, 2014. Available at https://www.fnlondon.com/articles/fintech-news-2-london-vs-us-20141029
  • Jaffe, A. B., and Trajtenberg, M. Patents, citations, and innovations: A window on the knowledge economy. MIT Press: Cambridge, 2002. [https://doi.org/10.7551/mitpress/5263.001.0001]
  • Karavias, Y., Narayan, P. K., and Westerlund, J. “Structural Breaks in Interactive Effects Panels and the Stock Market Reaction to COVID-19.” Journal of Business & Economic Statistics (No. 1 2022): 1-14. [https://doi.org/10.1080/07350015.2022.2053690]
  • Kim, J., and Lee, K. “Local-global interface as a key factor in the catching up of regional innovation systems: Fast versus slow catching up among Taipei, Shenzhen, and Penang in Asia.” Technological Forecasting and Social Change 174(2022): 121271. [https://doi.org/10.1016/j.techfore.2021.121271]
  • Lee, K. Schumpeterian analysis of economic catch-up: Knowledge, path-creation, and the middle-income trap. Cambridge University Press, 2013. [https://doi.org/10.1017/CBO9781107337244]
  • Lee, K., and Ki, J. H. Rise of latecomers and catch-up cycles in the world steel industry. Research Policy 46(No. 2 2017): 365-375. [https://doi.org/10.1016/j.respol.2016.09.010]
  • Markusen, A. Fuzzy concepts, scanty evidence, policy distance: the case for rigour and policy relevance in critical regional studies. Regional studies 37(No. 6-7 2003): 701-717. [https://doi.org/10.1080/0034340032000108796]
  • Menzel, M. P., and Fornahl, D. “Cluster life cycles—dimensions and rationales of cluster evolution.” Industrial and Corporate Change 19(No. 1 2010): 205-238. [https://doi.org/10.1093/icc/dtp036]
  • Shi, X., and Shi, Y. “Unpacking the process of resource allocation within an entrepreneurial ecosystem.” Research Policy 51(No. 9 2022): 104378. [https://doi.org/10.1016/j.respol.2021.104378]
  • Sonn, J. W., and Kang, H. “Bureaucratic rationale and use of an academic concept in policy-making: the rise and fall of the regional innovation system in South Korea.” Regional Studies 50(No. 3 2016): 540-552. [https://doi.org/10.1080/00343404.2015.1052061]
  • Sweeney, B., Mordue, G., and Carey, J. “Resilient or resistant? Critical reflections on resilience in an old industrial region.” Geoforum 110(2013): 125-135. [https://doi.org/10.1016/j.geoforum.2020.02.005]
  • Wong, C. Y., Sheu, J., and Lee, K. Dynamics or Dilemma: Assessing the Innovation Systems of Three Satellite Platform Regions (Singapore, Dublin and Penang). Eurasian Geography and Economics, in press, 2022. [https://doi.org/10.1080/15387216.2022.2039741]
  • Wong, C-Y. Convergence Innovation in City Innovation System, In Lee, K-R. (Ed.), Managing Convergence in Innovation, The New Paradigm of Technological Innovation, Routledge: Oxon, 117-137, 2017.
  • Wong, C-Y. and Lee, K. “Evolution of Innovation Systems of Two Industrial Districts in East Asia: Transformation and Upgrade from a Peripheral System and the Role of the Core Firms, Samsung and TSMC.” Journal of Evolutionary Economics 32 (2021): 955-990. [https://doi.org/10.1007/s00191-021-00755-2]
  • Wong, C-Y. and Salmin, M. M. “Attaining a Productive Structure for Technology: The Bayh–Dole Effect on University–Industry–Government Relations in Developing Economy.” Science and Public Policy 43(No. 1 2016): 29-45. [https://doi.org/10.1093/scipol/scv018]
  • Wong, C-Y., Ni, F-C. and Sugano, T., Detouring route of SMEs in post catching-up conditions: context and dilemmas behind the quest for science-based business model innovation, Asian Journal of Technology Innovation, In Press, 2021. [https://doi.org/10.1007/978-981-19-3436-0_7]
  • Wong, C-Y., Sheu, J. and Lee, K. The Quest of SMEs in Pivoting for New Technological Ventures: Comparing the Cases of Seven Cities, Presented online at Global Tech Mining Conference, 13 Nov 2020.
  • Wong, C-Y., Wang, I-K., Sheu, J., and Hu, M-C. “What network orientation supports the development of a Resilient City? Evidence from the innovation systems of eighty-seven cities” Cities 131(2022): 103923 [https://doi.org/10.1016/j.cities.2022.103923]
  • Xiao, J., Boschma, R., and Andersson, M. “Resilience in the European Union: The effect of the 2008 crisis on the ability of regions in Europe to develop new industrial specializations.” Industrial and Corporate Change 27(No. 1 2018): 15-47. [https://doi.org/10.1093/icc/dtx023]