Breakthrough inventions in China: the role of intra- and inter-regional collaboration and local knowledge base

Recently, the prevalent recommendation for industrialised regions is to diversify their local knowledge base through intra- and inter-regional collaborations, to maintain a competitive advantage in dynamic regional economies. However, this has resulted in a series of policies that lean towards a 'one-size-fits-all' approach. Theoretically, regions with varying local knowledge bases should follow unique technological trajectories. In this context, this article intends to examine the impact of collaboration, as well as its interaction effects with the local knowledge base, on the likelihood of breakthrough inventions. Our key findings, derived from a 15-year panel dataset (2002–2016) covering 200 prefecture-level cities in China, include: (1) Intra-regional collaboration and a balanced mix of intra- and inter-regional collaboration both positively influence the likelihood of breakthrough inventions; (2) The potential for breakthrough inventions depends on the interplay between collaboration and the local knowledge base. Specifically, internal collaboration is more beneficial for diversified regions, external collaboration aids more specialised regions, and both inter-regional collaboration or balanced mix of intra- and inter-regional collaboration can enhance the probability of breakthrough inventions for cities with a complex knowledge base. Our study holds significant implications for regional development, proposing a viable technological trajectory to mitigate path dependency.