R&D Partnerships and Capability of Innovation of Small and Medium-Sized Firms in Zhongguancun, Beijing: The Power of Proximity

We examine the impact of research partnerships on a firm's own R&D capability along with the context of the importance of geographical proximity using original survey data obtained from small and medium-sized firms in Zhongguancun Science Park (ZSP). This study develops an analytical framework related to the impact of research partnerships on a firm's R&D capability. Results show that research cooperation with universities and research institutes and small and medium-sized firms enhances the R&D capability of individual firms when the partners are located nearby, although distance has no significant effect on cooperation with large firms.