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Empirical evidence of the effects of global value chain( GVC) embeddedness on clustered firms’ innovation is presented in this paper. The intermediary roles of the two types of knowledge spillover( explicit and implicit) in GVC embeddedness and clustered firms’ innovation are considered, and the effects of structure embeddedness,relationship embeddedness,and acknowledgement embeddedness on clustered firms’ innovation are examined. Analysis is based on the sample of 134 export-oriented firms from the Shaoxing industrial cluster in Zhejiang province of China. Results show that although GVC embeddedness is associated with high use of external knowledge sources,clustered firms’ innovation is promoted indirectly through explicit knowledge spillover. Intrinsic connections exist among the different dimensions of GVC embeddedness,that is,structure embeddedness not only directly improves relationship embeddedness but also indirectly improves acknowledgement embeddedness through relationship embeddedness.
The intermediary roles of the two types of knowledge spillover (explicit and implicit) in GVC embeddedness and clustered firms’ innovation are considered, and the effects of structure embeddedness, relationship embeddedness, and acknowledgement embeddedness’ innovation are examined. Analysis is based on the sample of 134 export-oriented firms from the Shaoxing industrial cluster in Zhejiang province of China. is associated with high use of external knowledge sources, clustered firms’ innovation is promoted indirectly through explicit knowledge spillover. Intrinsic connections exist among the different dimensions of GVC embeddedness, that is, structure embeddedness not only directly improves relationship embeddedness but also improves improves acknowledgement embeddedness through relationship emb eddedness.