Related Variety, Global Connectivity and Institutional Embeddedness: Internet Development in Beijing and Shanghai Compared

Jun Zhang ()

No 1110, Papers in Evolutionary Economic Geography (PEEG) from Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography

Abstract: This paper contributes to the Evolutionary Economic Geography literature by employing the conceptualization of Ôrelated varietyÕ to compare the emerging internet industry in ChinaÕs two largest city-regions: Beijing and Shanghai. Official website registration records, Alexa internet traffic counts, venture capital investment data and information gathered through interviews with internet entrepreneurs were combined to develop the analysis. The findings confirm that the replication and diversification of related variety play a leading role in shaping the locational dynamics of an emerging industry. However, the localized nature of new firm formation should not be taken for granted as transnational entrepreneurship and venture capital are playing an increasingly salient role. The contrasting experience of internet evolution in these two Chinese city-regions also suggests that a regionÕs enduring political-institutional embeddedness significantly influences the generation and evolution of their related variety.

Keywords: related variety; institutions; connectivity; Internet; China (search for similar items in EconPapers)
JEL-codes: B25 B52 L25 L26 L52 L86 O18 O53 P25 R00 R11 (search for similar items in EconPapers)
Pages: 53 pages
Date: 2011-06, Revised 2011-06
New Economics Papers: this item is included in nep-cse, nep-hme, nep-ict and nep-tra
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:egu:wpaper:1110

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