Network Positions, Institutional Polycentrism, Firm Innovation: Evidence fro

The disparity of sub-national institutions in transitional economies gradually comes into the spotlight, while less attention has been paid to the coexistence and interaction of different institutional arrangements. Combining the social network theory and the institutional polycentrism perspective, this paper examines that the separate and co-moderating effects of different institutions – government intervention and intellectual property right (IPR) enforcement – on the association between structure holes and exploratory and exploitative innovations. The listed companies’ co-patenting network of Chinese patent-intensive industry during 2010-2019 provides empirical evidence to support our study. Specifically, structural holes are beneficial for both types of innovations. In addition, the higher government intervention, the more exploitative and exploratory innovations produced by enterprises occupying more structural holes. The stronger IPR enforcement is, the more exploratory innovation by bridge enterprises. The combination of heavy government intervention and strong IPR enforcement is best for exploratory innovation.