Zhongguancun Science Park (ZGC) in Beijing is considered the most innovative region in China. This paper is based on a quantitative survey among ZGC companies that captures the cooperation patterns of the firms. The survey was funded by the German Research Association (DFG). In the process of technological upgrading and innovation, companies in Beijing—as well as in other developing countries—make use of knowledge originating in foreign companies or in universities and public research organizations. The findings presented in this paper confirm that ZGC companies are linked to both sources of knowledge to the same extent. Cooperation with foreign companies helps ZGC companies to get new ideas and to enter the market with new products, whereas cooperation with universities is used mainly to design new products. Thus, the patterns of cooperation show that ZGC can absorb new knowledge from different sources. However, not all of the high-tech companies in ZGC are able to make use of international linkages in the innovation process, as about half of them do not have the necessary capabilities.
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