Returnee entrepreneurs and collaborative innovation: The impact of institutional environments

This study examines the propensity of collaborative innovation between returnee entrepreneurs and local partners. We argue that while collaborative innovation with local partners may be beneficial for returnees to tap into new technological opportunities in their home market, concerns about appropriability are likely to dissuade returnees from collaborative innovation. However, the availability of different institutional safeguards that can shelter against appropriability hazards can encourage returnees to pursue collaborative innovation. Specifically, we propose that an environment with a robust IPR enforcement and high social trust are two important formal and informal institutional dimensions that can mitigate appropriability concerns for returnees and promote collaborative innovation with local partners. Empirical analyses using a sample of Chinese high-technology ventures provide broad support for our hypotheses.