"Rice in the south and wheat in the north" culture, group trust and cooperative innovation

Pei Zhen, Peng Fei, Yang Guohao

Science Research Management ›› 2021, Vol. 42 ›› Issue (12) : 185-194.

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Science Research Management ›› 2021, Vol. 42 ›› Issue (12) : 185-194.

"Rice in the south and wheat in the north" culture, group trust and cooperative innovation

  • Pei Zhen1, Peng Fei2, Yang Guohao1
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Abstract

   Planting history influences regional culture, while different regional cultures influence group trust and collaborative innovation. Based on the theory of "rice versus wheat agriculture" to explain cultural differences, this paper empirically examines the impact of regional cultural differences on corporate collaborative innovation, using patent data of 16795 listed companies in China from 2007 to 2014.Empirical results show that the group trust formed by rice culture is of great help to enterprise innovation. But compared with invention patents and utility patents, this positive effect is mainly reflected in design patents, especially in long-term accumulation of effective patents and innovation of private listed companies. The general trust formed by wheat culture promotes utility model patents of state-owned listed companies, and the government′s support for innovation has a stronger cumulative effect. The contribution of R&D subsidies to invention patents of provincial and regional governments is higher than utility model patents and design patents in turn, and the contribution to innovation of state-owned enterprises is higher than that of private enterprises. Various tests show that the conclusions are robust. Therefore, the government should constantly strengthen cultural construction and inherit culture to promote innovation. The government should also encourage collaborative innovation and attach importance to the role of cultural factors in enterprise innovation as well as insist on increasing investment in innovation, R&D and improve the stable growth mechanism of scientific and technological input, and continue to increase innovation support for emerging enterprises. In the aspect of innovation and creation related to national innovation ability, the central government and local government should work together to support large-scale state-owned enterprises, and enhance the sense of crisis and mission of state-owned enterprises with their managers, so that to stimulate their innovative spirit.
    This paper summarizes the rice planting proportions in 1916, 1934, 1949, 1992 and 2008 in different provinces and regions. Secondly, the proportion of provincial R&D in GDP from 2007 to 2014 is calculated as the representative variable of government R&D input. In order to compare the proportion of rice in different periods as a cultural index, this paper selected the years with historical significance and key points from 1916 to 2016, such as the founding of The People′s Republic of China in 1949, Reform and Opening in 1978, the building of a socialist market economy in 1992 and the global financial crisis in 2008.The main explanatory variable is the proportion of rice planting in the provinces where listed companies are registered. After comparing the rice planting proportions in different periods, the rice planting proportions in 1916 is treated as the cultural indicators. Another main explanatory variable is the proportion of R&D in GDP of each province and region, which fluctuates between 0.17% and 6%. This shows that there are great differences in the input of R&D by the provincial and regional governments. Other controlling variables include: the ownership form of listed companies and the age of listed companies. We describe the age and its square of listed companies by the difference between the year of assessment and the year of listing. It shows that the relationship between age and innovation of listed companies may be U-shaped or inverted U-shaped, and the company′s age may no longer promote innovation to a certain extent.
   Firstly, the empirical results show that the proportion of rice planting in 1916 has a significant positive effect on the number of patent applications of Listed Companies in that year. In 1916, the proportion of rice in the provinces and regions where listed companies are located increased by 1%, and the number of patent applications in that year increased by 0.201%. Therefore, it proves that the more prosperous the rice culture is, the stronger the collectivism culture is, as well as the faster the cooperative innovation system of short radius group trust can be formed, and the more innovative patents and technologies of listed companies in the locality are. 
    Secondly, the empirical results prove that with the changes of climate, technology, population, industrialization and market factors, the group trust role of rice planting area on behalf of rice culture is declining, which is reflected in the smaller and smaller impact on collaborative innovation. It can be explained that as time goes to modern times, many factors such as climate, technology, population, industrial impact and market factors change more and more. The impact of these factors on the traditional rice culture areas in the original history is also greater, and the rice planting areas in China are also undergoing tremendous changes.
    Thirdly, if the explanatory variable is replaced by the cumulative number of valid patents, and the regression analysis is made by the equation, then the results show that rice culture has a significant positive effect on the total number of effective patents of listed companies. By comparing the results of the data, it can be concluded that the effect of rice culture on the cumulative validity of patent rights of listed companies in China is greater than that of the number of applications in that year. The cumulative effect of collaborative innovation caused by long-term group trust is greater than that of short-term effect.
   Fourthly, we classify the number of patent applications and the cumulative number of valid patents by invention patents, utility model patents and design patents, and then use logarithmic linear equation to make regression analysis. The results show that rice culture has a significant positive effect on the number of applications for three types of patents and the cumulative number of valid patents of listed companies in the same year. Moreover, the positive effect of rice culture on appearance design patents (the number of applications and the cumulative valid number) is more significant than that of invention patents and utility model patents. On the contrary, the positive effects of provincial R&D investment and state-owned enterprise ownership on the application and accumulation of invention patents and utility model patents are higher than that of design patents. However, state-owned holding has more prominent effect on the promotion of invention patents and utility patents, and even inhibits the cumulative effect of design patents.
    Finally, we classify the number of patent applications by patent type and ownership, and then use logarithmic linear equation to make regression analysis with the rice planting proportion in 1916 as the main explanatory variable. The number of patent applications of private listed companies in that year is higher than that of state-owned listed companies. Therefore, the positive effects of rice culture on the three types of patents of private listed companies are far higher than those of state-owned listed companies. For utility model patents of state-owned listed companies, wheat culture that promotes general trust may have a more positive effect. On the contrary, the proportion of provincial R&D in GDP has increased by 1%, and the number of patent applications of state-owned listed companies has increased by about 12%, which is higher than that of state-owned listed companies and private listed companies. Southern rice culture can promote short-term market innovation with single returns, but northern wheat culture, especially with the government′s R&D investment and state-owned enterprises′ investment in innovation, has a positive contribution to long-term invention-creation patents with broad social returns.
   This paper empirically examines the impact of regional cultural differences on corporate collaborative innovation. The empirical results show that the group trust formed by rice culture is of great help to innovation. Therefore, the government should continue to strengthen cultural construction, actively inherit culture, encourage collaborative innovation, and attach importance to the role of cultural factors in enterprise innovation. At the same time, the cumulative effect of collaborative innovation caused by long-term group trust is greater than the short-term effect of that year, so the government should insist on increasing investment in innovation and R&D.

Key words

 "rice in the south and wheat in the north" culture / group trust / cooperative innovation

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Pei Zhen, Peng Fei, Yang Guohao. "Rice in the south and wheat in the north" culture, group trust and cooperative innovation[J]. Science Research Management. 2021, 42(12): 185-194

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