Chain Independent Directors and Innovation Knowledge Spillover: Evidence From Patent Citation

ABSTRACT China's socialist modernization has entered a new development stage, where high‐quality economic development cannot be achieved without firms’ high‐level technological innovation (In National Science and Technology Conference, National Science and Technology Awards Conference, the 21st Academician Conference of Chinese Academy of Sciences, and the 17th Academician Conference of Chinese Academy of Engineering. The General Secretary emphasised that Chinas modernization must be underpinned by scientific and technological modernization, high‐quality development relies on new growth engines by scientific and technological innovation. We must fully recognise the strategic leading position and fundamental supporting role of science and technology, anchor the strategic goal of building China into a country strong in science and technology by 2035, accelerate high‐level self‐reliance and self‐strength in science and technology.). However, the increasing complexity and shorter innovation cycles make it hard for individual companies to meet all requirements, resulting in an increased reliance on external resources. Despite China's enterprises boost innovation investments annually (The National Bureau of Statistics released ‘Statistical Communiqué of the Peoples Republic of China on the 2024 National Economic and Social Development’. Regarding innovation, Chinas annual R&D expenditure rose from 2.4393 trillion to 3.613 trillion yuan over 5 years, with consistent growth above 8%.), their knowledge spillover level among innovation entities still lags far behind the world's advanced economies ( Source: China Merchants Securities, ‘Comparison and Recommendations of R&D Incentive Policies in China and the U.S.—Part of Sino‐US Comparison Series Report (0711).’). Relatively low innovation spillovers hinder knowledge sharing and learning, which is not conducive to breaking the dependence on core technologies. Therefore, improving technological resources sharing, guiding knowledge flow across different innovation entities and achieving the transformation of learning‐imitation‐reinvention are crucial for advancing national self‐reliance and self‐improvement.