Cluster heterogeneity and efficiency of innovation network—Evidence from Shanghai and Taizhou in China

There are debates about cluster heterogeneity, network structures, and innovations. The difference in the degree to which firms joined in the internal and external networks of heterogeneous clusters can affect innovation performance. There is still a lack of empirical evidence on how networks or spatial factors can differentially affect innovation efficiency due to cluster heterogeneity. China has endogenous clusters formed by small and medium-sized firms and numerous clusters mainly based on government planning instrument, such as industrial zones and high-tech parks. There are controversies over these planned cluster, such as insufficient firm connections and weak innovation effectiveness.Cluster innovation is a complex socio-economic process that combines endogenous context, exogenous factors and interacts with multi-spatial relationships. This perspective may explain the differences in which heterogeneous clusters improve efficiency. This paper draws on first-hand data obtained from 188 questionnaires. The Lingang Equipment Manufacturing Cluster in Shanghai and the Taizhou Machine Tool Manufacturing Cluster in Zhejiang serve as examples of heterogeneous clusters. We combine the cluster's endogenous and exogenous characteristics, network size and strength of network ties, and local and non-local innovation spaces to discuss the impact on innovation efficiency. Expecting to provide a reference for improving the innovation efficiency of heterogeneous clusters in developing economies. The results suggest that regardless of local or non-local scales, exogenous clusters have a more pronounced effect of local network size and non-local tie strength on innovation performance based on demand for proximity to customers and suppliers.