The Impact of Local Government Policy on Innovation Ecosystem in Knowledge Resource Scarce Region: Case Study of Changzhou, China

With business today relying increasingly more on collaboration, new product development is also on a network base. The concept of innovation ecosystem is built upon knowledge creating and sharing across companies, knowledge institutions, policy regimes, business enterprises and industry boundaries. China as the largest emerging market has witnessed innovation with interaction among government, university, industry and research. Though government plays an important role in promoting innovation, not many studies have covered the detailed dynamic process and impact of policy on forming innovation ecosystem, especially in places where initial knowledge resources such as universities and research institutes are limited. Therefore, our article aims to fill in this research gap. Through document review and case study on Changzhou region of China, we map out the local government policy concerns and changes during each stage of innovation ecosystem formation, development and expansion from 2001 to 2015. The interaction mechanism among government, university, industry and research is summarised with a proposed framework to highlight the key policy making areas. Further research areas are recommended with implication and conclusion.