Crisis-Induced Innovation: Quality Upgrading in Chinese Industrial Clusters

Author:

Hu Xiangting1,Ruan Jianqing2,Zhang Xiaobo3

Affiliation:

1. School of Economics and Management, Harbin Institute of Technology (Shenzhen), China

2. China Academy for Rural Development, Zhejiang University, China

3. National School of Development, Peking University and IFPRI, China

Abstract

Abstract Supporting institutions and policies play a key role in facilitating upgrades to product quality among manufacturing firms. However, the emergence of quality-supporting institutions has not been well studied. Based on qualitative and quantitative evidence in Chinese clusters, this paper shows that quality-enhancing institutions and policies often emerge in response to crises, such as consumer boycotts and impositions of export barriers, which can catalyze collective action from entrepreneurs and local governments to improve product quality. (JEL codes: L15; L22; L51; L60).

Funder

National Natural Science Foundation of China

Soft Science Research Project of Zhejiang

Publisher

Oxford University Press (OUP)

Subject

Law,Organizational Behavior and Human Resource Management,Economics and Econometrics

Reference54 articles.

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2. “A Model of Growth through Creative Destruction,”;Aghion;Econometrica,1992

3. “The Market for ‘Lemons’: Quality Uncertainty and the Market Mechanism;Akerlof;Quarterly Journal of Economics,1970

4. “Import Competition and Quality Upgrading;Amiti;Review of Economics and Statistics,2013

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