Spatial structure and organization of the medical device industry urban network in China: evidence from Specialized, Refined, Distinctive, and Innovative firms

Feng Hu ¹ Huijie Yang ¹ Liping Qiu ² Shaobin Wei ³ Hao Hu ^4* Haiyan Zhou ^5*

• ¹ Shanghai University of International Business and Economics, Shanghai, Shanghai Municipality, China
• ² Ningbo University, Ningbo, Zhejiang Province, China
• ³ Guangdong University of Finance, Guangzhou, Guangdong, China
• ⁴ Shanghai University, Shanghai, Shanghai Municipality, China
• ⁵ Nueva Ecija University of Science and Technology, Cabanatuan, Philippines

Investigating the network of firms in a specific industry helps explain industrial location and urban functions and provides guidelines for promoting industrial restructuring and high-quality development. This study develops a network model for the relationship between firms and cities based on the data of listed Specialized, Refined, Distinctive, and Innovative (SRDI) medical device manufacturing firms in China to identify the spatial distribution and influencing factors of the urban network of such firms using network analysis and GeoDetector. Three conclusions are obtained from the study. First, the urban network of listed SRDI medical device manufacturing firms exhibits a sparse structure, with the density decreasing from east to west, and the out-degree presenting significant spatial concentration. Suzhou, Shanghai, and Shenzhen are the core of the network power. The in-degree presents low spatial concentration. Clearly differentiated network functions are observed. Second, significant spatial differences are noted between high-and low-level linkage networks from the perspective of corporate governance structure. Third, economic level, labour costs, level of opening-up, talent base, and technological innovation capability have significant effects on the urban network of listed SRDI medical device manufacturing firms.