The pace and stability of small enterprise innovation in highly dynamic economies: A China-based template

In this paper, we analyze the dynamics of knowledge spillover entrepreneurship in the Chinese "transitional" context, as a template for the evaluation of the pace and stability of small business innovation institutionalization in many transition economies, and we also provide theory and evidence to further develop knowledge spillover entrepreneurship theory. Based on the first available cross-sectional data set (2005 for 2004) covering 158 manufacturing sectors over the five Chinese provinces representing one-third of China's industrial output, the empirical analysis provides evidence that local competition/specialization affect the pace/stability of innovation institutionalization in small enterprises and large-medium enterprises differentially, suggesting new insights for research and policy in the transition-economy/small business management context.