Hierarchically Differentiated Dynamics of State–Business Relations in Regional Innovation: Building National Enterprise Technology Centers in China's Greater Bay Area

Abstract:State–business relations are important in studying economic restructuring and technological development in emerging industries. Classic debates have centered on a state- or business-centric model to spur innovation. Designated by the Chinese state as a region of innovation, the Guangdong-Hong Kong-Macau Greater Bay Area (GBA) has seen the rise of intensive state–business interactions. Our investigation of the National Enterprise Technology Center accreditation policy in the GBA reveals features distinguishing state–business interactions in regional innovation. These interactions are dynamic in the sense that the state and businesses, new technology companies in our case, co-determine and co-constitute policy implementation. Moreover, these interactions are hierarchically differentiated, with their forms and significance varying with the particular level of government involved because each level is accorded capacities and responsibilities of different political-economic importance. We propose that the multi-level governance (MLG) model provides a new and useful perspective for understanding such dynamics. Our results showed that each level of government interacted with technology companies by adopting different strategies. At the same time, businesses adapted their activities with different levels of government to foster partnerships for technological advancement.