Knowledge Spillovers from Regional Leading Firms and Local SMEs' Growth: An Empirical Study of SMEs in Three Industrial Clusters in Zhejiang Province

Abstract

This empirical research investigates the phenomenon of knowledge spillovers from regional leading firms to local small and medium-sized enterprises (SMEs) and its impact on SMEs' growth within three industrial clusters in Zhejiang province, China. Industrial clusters are recognized as hubs of innovation and economic activity, with leading firms often serving as sources of knowledge, technology, and best practices for surrounding SMEs. Drawing on theories of knowledge spillovers, innovation diffusion, and industrial clusters, this study examines how SMEs in Zhejiang province benefit from proximity to regional leading firms and the mechanisms through which knowledge is transferred and assimilated. Through a combination of surveys, interviews, and statistical analysis, this research explores the extent to which SMEs access and utilize knowledge from leading firms, as well as the resulting effects on their innovation performance, productivity, and competitiveness. Additionally, the study investigates contextual factors such as cluster governance, industry dynamics, and regional policies that may facilitate or hinder knowledge spillovers and SME growth. By providing empirical evidence and insights into the dynamics of knowledge exchange within industrial clusters, this research contributes to our understanding of the role of regional leading firms in driving local economic development and fostering SME innovation and growth. The findings have practical implications for policymakers, cluster managers, and SME owners seeking to leverage knowledge spillovers as a means of enhancing competitiveness and sustainable growth in regional economies.