ABSTRACT
Technological innovation as an important means to maintain sustained economic growth has attracted much scholarly attention in recent decades. The internal mechanism of innovation has remained controversial in spite of the extensive research work that has been done both theoretically and empirically (Fagerberg 2005). Recent theoretical attempts to understand the dynamics of technological innovation have placed much emphasis on the process of localized knowledge spillover in developed economies and technological transfer in the developing world (Döring and Schnellenbach 2006; O'Mahony and Vecchi 2009). However, the notions of localized knowledge spillover and external technological transfer have both been focused on the inter-firm knowledge exchange and technological linkages without giving adequate consideration to other important influential factors intrinsic to the formulation of innovation strategies.
