International Knowledge Spillovers and Returnee Entrepreneurship: Evidence from China

Extending the knowledge spillover perspective of entrepreneurship to a transnational context, we investigate the extent to which returnees can fill international knowledge gaps affects their entrepreneurial decisions and the moderation effects of policy support in their home country and their cross-cultural adjustment. By analysing first-hand survey data of Chinese returnees, we find that returnees with new technologies are more likely to become entrepreneurs. Meanwhile, the positive relationship between new technology and returnee entrepreneurial decisions is strengthened by the home country's supportive policies, but is weakened by the difficulties in adjusting to local culture in the home country.