China’s regions face huge gaps in economic development, especially the western provinces lack far behind the coastal provinces due to uneven political attention in the process of China’s run for becoming an industrial nation in the past decades and its location in the hinterland of the country. Since the beginning of the new millennium China’s western region receives special attention by the central government in terms of economic development. The main reason is that the population in China’s underdeveloped west is more and more unsatisfied with its situation. The eastern provinces and coastal regions have reached a relatively high level of development while a greater part of the western rural regions are underdeveloped, generating growth rates which cannot compete with those of the East and having no means to foster development on their own. During the prior 20 years the disparities between China’s West and the East were increasing entailing the thread of social instability and riots which is something the government in Beijing fears most.
Regional growth received tremendous scientific attention since the middle of the 20th century which resulted in various approaches and theories. Different patterns have been developed to artificially generate growth. Due to the observations made in the American Silicon Valley and northern Italy, where agglomeration of industries caused sustainable regional growth, the model of business incubation and technology parks was developed. Since then governments all over the world, from developed industrial nations as well as from emerging nations and developing countries, adapt this model to attract foreign direct investment (FDI), steer investment and foster regional growth in areas where it is demanded. Although business incubation centers are popular among policy makers, scholars have a critical attitude towards incubators and their outcome and doubts have been raised about their effectiveness as a regional development tool. Among the reasons for criticism is the fact that their growth has occurred due to attraction of firms from outside their host region rather than through the formation of new firms. One of the main questions this thesis is trying to give an answer to is: Are Business Incubation Centers and Science and technology parks a suitable tool to foster economical growth in Western China?
Table of Contents
1. Introduction
1.1 Introduction to the Topic and Main Question
1.2 Structure of the Thesis
1.3 Data, Sources and Methodology
2. The Concept of Business Incubation
2.1 The Roots of the Incubation Model
2.2 The Incubation Process
3. Forms of Incubation Centre’s
3.1 University Business Incubator
3.2 Business Innovation Centre
3.3 Independent Business Incubator
3.4 Corporate Business Incubator
4. Science & Technology Programs in China
4.1 Major Science and Technology Programs until Today
4.2 China’s Mission to become a High-Tech Nation
5. Business Incubation in China
5.1 Development of Incubators in China
5.2 Spreading of Incubators in China
5.3 Incubators in China’s West
6. China’s Need for Regional Development
6.1 Roots of China’s Regional Disparities
6.2 China’s Regional Disparities since 1949
6.3 Regional Disparities in the Post-Mao Period
7. Understanding Regional Growth
7.1 Elements of Regional Growth
7.1.1 Location
7.1.2 Infrastructure
7.1.3 Human Capital
7.1.4 Political Incentives
7.1.5 Investment
8. Regional Growth in Western China
8.1 Extension of the Infrastructure
8.2 Development of Human Capital
8.3 Attraction of FDI
8.3 Technology Advancement
8.4 Summary
9. Impact of Business Incubation Centers on Regional Growth
9.1 Incubators and Location
9.2 Impact of Technology Parks on a Regions Infrastructure
9.3 Human Capital Development due to Technology Incubators
9.4 The Role of Policy with Regards to Incubators
10. Concluding Remarks on the Relevance of Business Incubation Centers in Western China
Research Objectives and Themes
This thesis investigates the effectiveness of business incubation centers and technology parks as tools for fostering economic development in Western China. It evaluates whether these instruments can effectively bridge the regional economic disparities between China's developed coastal provinces and its underdeveloped hinterland by attracting investment and promoting innovation.
- Regional economic disparities in China and their historical roots
- The concept, process, and various models of business incubation
- Governmental science and technology programs in China
- Analysis of incubator distribution and their impact on regional growth
- The role of infrastructure, human capital, and political incentives in regional development
Excerpt from the Book
2.1 The Roots of the Incubation Model
The scientific foundations of today’s Business Incubators date back to the year 1920 when Alfred Marshall was the first economist concerning oneself with clustering of industries in one locality. He realized that small and medium enterprises (SME) in an industrial district often were affiliated with each other along the value creation chain. SME located in an industrial district use comprehensive strategies to achieve common purposes. This interdependence of the companies leads to knowledge spillovers, competition and therefore foster innovation within the industrial district. According to Marshall three important factors contribute to the concentration of industries: fast flow of information which leads to knowledge spillovers, a capable labor market and linkages to a strong local market. Marshall assumed that geographical concentration of industries automatically creates externalities from which the surrounding region would benefit. In addition Marshall found out that within an industrial district not just a purpose community of the companies was given, he identified social ties between distinct actors. During the 20th century several other economists recessed Marshall’s theory- among them Kenneth Arrow (1962) and Paul M. Romer (1986). Their scientific results, along with the ones of Marshall, became known as the MAR-Theory. MAR-Theory states that geographically localized knowledge spillover entail external economies and may result in increasing returns on investment and therefore a long-run growth in the host region it is located in.
Summary of Chapters
1. Introduction: Outlines the problem of regional disparity in China, the research question regarding the utility of business incubators, and the methodology used.
2. The Concept of Business Incubation: Explains the theoretical foundations of business clusters (MAR-Theory, Cluster-Theory) and defines the business incubation process.
3. Forms of Incubation Centre’s: Categorizes various types of incubators, including university, public, independent, and corporate models.
4. Science & Technology Programs in China: Details the national efforts and programs aimed at transforming China into an innovative, high-tech nation.
5. Business Incubation in China: Evaluates the development and geographical distribution of incubators across Chinese provinces, highlighting the data limitations.
6. China’s Need for Regional Development: Examines the historical context and causes of regional inequality in China since 1949 and the shift toward the Western Development Initiative.
7. Understanding Regional Growth: Identifies the five critical elements of regional development: location, infrastructure, human capital, political incentives, and investment.
8. Regional Growth in Western China: Analyzes the practical challenges of developing Western China, specifically regarding infrastructure, education, and foreign direct investment (FDI).
9. Impact of Business Incubation Centers on Regional Growth: Critically assesses how incubators influence local infrastructure, human capital, and policy-driven development.
10. Concluding Remarks on the Relevance of Business Incubation Centers in Western China: Summarizes the findings, noting that while incubators provide some benefits, they are not a standalone solution for regional growth in the West.
Keywords
Business Incubation, Regional Growth, Western China, Technology Parks, Economic Disparity, Industrial Clusters, Human Capital, Infrastructure, Foreign Direct Investment, Innovation, Government Policy, Technology Transfer, Regional Development, Start-ups, Knowledge Spillover
Frequently Asked Questions
What is the core subject of this thesis?
The thesis explores whether business incubation centers and science and technology parks serve as an effective mechanism to foster economic growth and development in the underdeveloped Western regions of China.
What are the primary themes covered?
The study covers the theoretical roots of industrial clustering, the history of China's regional disparities, government S&T policies, the role of infrastructure and human capital, and the practical application of incubator models in Western China.
What is the main research question?
The central question asks if business incubation centers and science and technology parks are a suitable tool to foster economic growth in Western China.
Which methodology is employed in this research?
The author utilizes a secondary research approach, analyzing existing scientific books, academic journals, official Chinese statistical yearbooks, and international organizational reports (such as OECD papers) to assess the impact of incubators.
What does the main body focus on?
The main body moves from global theoretical foundations of clusters to the specific Chinese context, analyzing government initiatives, the current state of infrastructure and human capital in Western China, and the strategic role of policy in supporting incubator success.
Which keywords best characterize this work?
The work is defined by terms like business incubation, regional growth, Western China, industrial clusters, economic disparity, and innovation policy.
Why are incubators in Western China struggling to replicate Silicon Valley-style success?
The author argues that Western Chinese incubators are often driven by top-down government political incentives rather than organic market demand, natural clustering effects, or the presence of established high-tech environments.
What role does infrastructure play in this analysis?
Infrastructure is identified as a vital precondition for regional growth. The author notes that while Western China has seen significant investment, a lack of local technological integration often leads to inefficiencies where materials and expertise must be imported from the coastal East.
How significant is the role of human capital?
Human capital is considered decisive. The author highlights that Western China lacks sufficient higher educational institutions, and many educated individuals migrate to the coast, creating a talent gap that hinders the effectiveness of technology incubators.
What is the final conclusion regarding incubators in Western China?
The author concludes that while incubators provide value through knowledge diffusion and support for specific ventures, they cannot solve the broader regional development gap on their own; they are medium- to long-term tools that require a foundation of strong education and infrastructure.
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- Tobias Speicher (Autor:in), 2010, The Impact of Business Incubation Centre on Regional Growth in Western China, München, GRIN Verlag, https://www.grin.com/document/212286
