IDEAS home Printed from https://ideas.repec.org/a/eee/teinso/v68y2022ics0160791x21003195.html
   My bibliography  Save this article

Spatial spillovers and threshold effects of internet development and entrepreneurship on green innovation efficiency in China

Author

Listed:
  • Fang, Zhen
  • Razzaq, Asif
  • Mohsin, Muhammad
  • Irfan, Muhammad

Abstract

Green innovation is a critical component of high-quality development that is particularly integrated with the Chinese 14th five-year plan. At present, internet development and entrepreneurship are considered to be the important driving forces to improve green innovation efficiency adhered by sustainable development goals. Thus, based on the panel of 30 provincial administrative regions in China from 2006 to 2018 and 196 cities from 2012 to 2018, the spatial spillover, threshold effects, causality of Internet development on green innovation efficiency (GIE) are comprehensively investigated. The results reveal that internet development and entrepreneurship have a positive effect on the GIE. This conclusion is still valid after a series of tests of robustness including iv estimation. There are also significant spatial spillover effects among internet development, entrepreneurship, and GIE. For instance, the local internet development and entrepreneurship can significantly strengthen the green innovation efficiency of neighboring regions in China. The threshold model reveals that advancement in regional entrepreneurship lifts the positive impact of internet development on GIE. Manifestly, the development of Internet and entrepreneurship have a marginal increasing non-linear impact on the GIE, that significantly varied across different thresholds of both variables. Taking broadband China as a quasi-natural experiment, this paper tests the causality between the development of Internet and the efficiency of green innovation. The results show that the broadband China policy has significantly promoted the efficiency of green innovation. These research findings offer valuable policy recommendations for government and stakeholders.

Suggested Citation

  • Fang, Zhen & Razzaq, Asif & Mohsin, Muhammad & Irfan, Muhammad, 2022. "Spatial spillovers and threshold effects of internet development and entrepreneurship on green innovation efficiency in China," Technology in Society, Elsevier, vol. 68(C).
    • Handle: RePEc:eee:teinso:v:68:y:2022:i:c:s0160791x21003195
    DOI: 10.1016/j.techsoc.2021.101844
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0160791X21003195
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.techsoc.2021.101844?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Syed Abdul Rehman Khan & Asif Razzaq & Zhang Yu & Sharon Miller, 2021. "Retracted: Industry 4.0 and circular economy practices: A new era business strategies for environmental sustainability," Business Strategy and the Environment, Wiley Blackwell, vol. 30(8), pages 4001-4014, December.
    2. Shahid Ali & Qingyou Yan & Muhammad Sajjad Hussain & Muhammad Irfan & Munir Ahmad & Asif Razzaq & Vishal Dagar & Cem Işık, 2021. "Evaluating Green Technology Strategies for the Sustainable Development of Solar Power Projects: Evidence from Pakistan," Sustainability, MDPI, vol. 13(23), pages 1-29, November.
    3. Hansen, Bruce E., 1999. "Threshold effects in non-dynamic panels: Estimation, testing, and inference," Journal of Econometrics, Elsevier, vol. 93(2), pages 345-368, December.
    4. Akram, Rabia & Chen, Fuzhong & Khalid, Fahad & Huang, Guanhua & Irfan, Muhammad, 2021. "Heterogeneous effects of energy efficiency and renewable energy on economic growth of BRICS countries: A fixed effect panel quantile regression analysis," Energy, Elsevier, vol. 215(PB).
    5. Kontolaimou, Alexandra & Giotopoulos, Ioannis & Tsakanikas, Aggelos, 2016. "A typology of European countries based on innovation efficiency and technology gaps: The role of early-stage entrepreneurship," Economic Modelling, Elsevier, vol. 52(PB), pages 477-484.
    6. Howard J. Wall & Yannis Georgellis, 2000. "What makes a region entrepreneurial? Evidence from Britain," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 34(3), pages 385-403.
    7. Shane Greenstein, 2020. "The Basic Economics of Internet Infrastructure," Journal of Economic Perspectives, American Economic Association, vol. 34(2), pages 192-214, Spring.
    8. James Lesage & Manfred Fischer, 2008. "Spatial Growth Regressions: Model Specification, Estimation and Interpretation," Spatial Economic Analysis, Taylor & Francis Journals, vol. 3(3), pages 275-304.
    9. Chien, Fengsheng & Anwar, Ahsan & Hsu, Ching-Chi & Sharif, Arshian & Razzaq, Asif & Sinha, Avik, 2021. "The role of information and communication technology in encountering environmental degradation: Proposing an SDG framework for the BRICS countries," Technology in Society, Elsevier, vol. 65(C).
    10. David J. Teece, 2008. "Firm organization, industrial structure, and technological innovation," World Scientific Book Chapters, in: The Transfer And Licensing Of Know-How And Intellectual Property Understanding the Multinational Enterprise in the Modern World, chapter 11, pages 265-296, World Scientific Publishing Co. Pte. Ltd..
    11. Anokhin, Sergey & Schulze, William S., 2009. "Entrepreneurship, innovation, and corruption," Journal of Business Venturing, Elsevier, vol. 24(5), pages 465-476, September.
    12. Katz, Michael L & Shapiro, Carl, 1986. "Technology Adoption in the Presence of Network Externalities," Journal of Political Economy, University of Chicago Press, vol. 94(4), pages 822-841, August.
    13. Arifa Tanveer & Shihong Zeng & Muhammad Irfan & Rui Peng, 2021. "Do Perceived Risk, Perception of Self-Efficacy, and Openness to Technology Matter for Solar PV Adoption? An Application of the Extended Theory of Planned Behavior," Energies, MDPI, vol. 14(16), pages 1-24, August.
    14. H. Fried & C. Lovell & S. Schmidt & S. Yaisawarng, 2002. "Accounting for Environmental Effects and Statistical Noise in Data Envelopment Analysis," Journal of Productivity Analysis, Springer, vol. 17(1), pages 157-174, January.
    15. Bruce E. Hansen, 2000. "Sample Splitting and Threshold Estimation," Econometrica, Econometric Society, vol. 68(3), pages 575-604, May.
    16. Bilal Ahmad & Liu Da & Mirza Huzaifa Asif & Muhammad Irfan & Shahid Ali & Muhammad Imad Ud Din Akbar, 2021. "Understanding the Antecedents and Consequences of Service-Sales Ambidexterity: A Motivation-Opportunity-Ability (MOA) Framework," Sustainability, MDPI, vol. 13(17), pages 1-19, August.
    17. Ren, Siyu & Hao, Yu & Xu, Lu & Wu, Haitao & Ba, Ning, 2021. "Digitalization and energy: How does internet development affect China's energy consumption?," Energy Economics, Elsevier, vol. 98(C).
    18. Mukeshimana, Marie Claire & Zhao, Zhen-Yu & Ahmad, Munir & Irfan, Muhammad, 2021. "Analysis on barriers to biogas dissemination in Rwanda: AHP approach," Renewable Energy, Elsevier, vol. 163(C), pages 1127-1137.
    19. Szymkowiak, Andrzej & Melović, Boban & Dabić, Marina & Jeganathan, Kishokanth & Kundi, Gagandeep Singh, 2021. "Information technology and Gen Z: The role of teachers, the internet, and technology in the education of young people," Technology in Society, Elsevier, vol. 65(C).
    20. Hao, Yu & Gai, Zhiqiang & Wu, Haitao, 2020. "How do resource misallocation and government corruption affect green total factor energy efficiency? Evidence from China," Energy Policy, Elsevier, vol. 143(C).
    21. Li, Guangpei & Wang, Xiaoyu & Wu, Jinhua, 2019. "How scientific researchers form green innovation behavior: An empirical analysis of China's enterprises," Technology in Society, Elsevier, vol. 56(C), pages 134-146.
    22. Cumming, Douglas, 2007. "Government policy towards entrepreneurial finance: Innovation investment funds," Journal of Business Venturing, Elsevier, vol. 22(2), pages 193-235, March.
    23. David Audretsch & Max Keilbach, 2004. "Entrepreneurship and regional growth: an evolutionary interpretation," Journal of Evolutionary Economics, Springer, vol. 14(5), pages 605-616, December.
    24. Lu Zhang & Renyan Mu & Shuhua Hu & Quan Zhang & Song Wang, 2021. "Impacts of Manufacturing Specialized and Diversified Agglomeration on the Eco-Innovation Efficiency—A Nonlinear Test from Dynamic Perspective," Sustainability, MDPI, vol. 13(7), pages 1-27, March.
    25. Daron Acemoglu & Pascual Restrepo, 2018. "The Race between Man and Machine: Implications of Technology for Growth, Factor Shares, and Employment," American Economic Review, American Economic Association, vol. 108(6), pages 1488-1542, June.
    26. Hong, Jin & Feng, Bing & Wu, Yanrui & Wang, Liangbing, 2016. "Do government grants promote innovation efficiency in China's high-tech industries?," Technovation, Elsevier, vol. 57, pages 4-13.
    27. Junhong Bai, 2013. "On Regional Innovation Efficiency: Evidence from Panel Data of China's Different Provinces," Regional Studies, Taylor & Francis Journals, vol. 47(5), pages 773-788, May.
    28. Lechner, Michael, 2011. "The Estimation of Causal Effects by Difference-in-Difference Methods," Foundations and Trends(R) in Econometrics, now publishers, vol. 4(3), pages 165-224, November.
    29. Simone Marsiglio & Marco Tolotti, 2018. "Endogenous growth and technological progress with innovation driven by social interactions," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 65(2), pages 293-328, March.
    30. Blind, Knut & Petersen, Sören S. & Riillo, Cesare A.F., 2017. "The impact of standards and regulation on innovation in uncertain markets," Research Policy, Elsevier, vol. 46(1), pages 249-264.
    31. Tariq, Adeel & Badir, Yuosre F. & Tariq, Waqas & Bhutta, Umair Saeed, 2017. "Drivers and consequences of green product and process innovation: A systematic review, conceptual framework, and future outlook," Technology in Society, Elsevier, vol. 51(C), pages 8-23.
    32. Wu, Haitao & Hao, Yu & Ren, Siyu, 2020. "How do environmental regulation and environmental decentralization affect green total factor energy efficiency: Evidence from China," Energy Economics, Elsevier, vol. 91(C).
    33. Wu, Haitao & Hao, Yu & Weng, Jia-Hsi, 2019. "How does energy consumption affect China's urbanization? New evidence from dynamic threshold panel models," Energy Policy, Elsevier, vol. 127(C), pages 24-38.
    34. Razzaq, Asif & An, Hui & Delpachitra, Sarath, 2021. "Does technology gap increase FDI spillovers on productivity growth? Evidence from Chinese outward FDI in Belt and Road host countries," Technological Forecasting and Social Change, Elsevier, vol. 172(C).
    35. Reinhard, Stijn & Knox Lovell, C. A. & Thijssen, Geert J., 2000. "Environmental efficiency with multiple environmentally detrimental variables; estimated with SFA and DEA," European Journal of Operational Research, Elsevier, vol. 121(2), pages 287-303, March.
    36. Katz, Michael L & Shapiro, Carl, 1985. "Network Externalities, Competition, and Compatibility," American Economic Review, American Economic Association, vol. 75(3), pages 424-440, June.
    37. Azeem, Muhammad & Ahmed, Munir & Haider, Sajid & Sajjad, Muhammad, 2021. "Expanding competitive advantage through organizational culture, knowledge sharing and organizational innovation," Technology in Society, Elsevier, vol. 66(C).
    38. An, Hui & Xu, Jianjun & Ma, Xuejiao, 2020. "Does technological progress and industrial structure reduce electricity consumption? Evidence from spatial and heterogeneity analysis," Structural Change and Economic Dynamics, Elsevier, vol. 52(C), pages 206-220.
    39. Matthias Mrożewski & Jan Kratzer, 2017. "Entrepreneurship and country-level innovation: investigating the role of entrepreneurial opportunities," The Journal of Technology Transfer, Springer, vol. 42(5), pages 1125-1142, October.
    40. Razzaq, Asif & Wang, Yufeng & Chupradit, Supat & Suksatan, Wanich & Shahzad, Farrukh, 2021. "Asymmetric inter-linkages between green technology innovation and consumption-based carbon emissions in BRICS countries using quantile-on-quantile framework," Technology in Society, Elsevier, vol. 66(C).
    41. Gao, Wenlian & Chou, Julia, 2015. "Innovation efficiency, global diversification, and firm value," Journal of Corporate Finance, Elsevier, vol. 30(C), pages 278-298.
    42. Wu, Haitao & Hao, Yu & Ren, Siyu & Yang, Xiaodong & Xie, Guo, 2021. "Does internet development improve green total factor energy efficiency? Evidence from China," Energy Policy, Elsevier, vol. 153(C).
    43. Muniz, M. A., 2002. "Separating managerial inefficiency and external conditions in data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 143(3), pages 625-643, December.
    44. David Audretsch & Diana Heger & Tobias Veith, 2015. "Infrastructure and entrepreneurship," Small Business Economics, Springer, vol. 44(2), pages 219-230, February.
    45. Qayoom Khachoo & Ruchi Sharma, 2016. "FDI and Innovation: An Investigation into Intra- and Inter-industry Effects," Global Economic Review, Taylor & Francis Journals, vol. 45(4), pages 311-330, October.
    46. Lange, Steffen & Pohl, Johanna & Santarius, Tilman, 2020. "Digitalization and energy consumption. Does ICT reduce energy demand?," Ecological Economics, Elsevier, vol. 176(C).
    47. Jiancheng Guan & Kairui Zuo, 2014. "A cross-country comparison of innovation efficiency," Scientometrics, Springer;Akadémiai Kiadó, vol. 100(2), pages 541-575, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wu, Haitao & Xue, Yan & Hao, Yu & Ren, Siyu, 2021. "How does internet development affect energy-saving and emission reduction? Evidence from China," Energy Economics, Elsevier, vol. 103(C).
    2. Junhong Qu & Xiaoli Hao, 2022. "Digital Economy, Financial Development, and Energy Poverty Based on Mediating Effects and a Spatial Autocorrelation Model," Sustainability, MDPI, vol. 14(15), pages 1-24, July.
    3. Xie, Mingting & Irfan, Muhammad & Razzaq, Asif & Dagar, Vishal, 2022. "Forest and mineral volatility and economic performance: Evidence from frequency domain causality approach for global data," Resources Policy, Elsevier, vol. 76(C).
    4. Yu Hao & Jingwen Huang & Yunxia Guo & Haitao Wu & Siyu Ren, 2022. "Does the legacy of state planning put pressure on ecological efficiency? Evidence from China," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 3100-3121, November.
    5. Ren, Siyu & Hao, Yu & Xu, Lu & Wu, Haitao & Ba, Ning, 2021. "Digitalization and energy: How does internet development affect China's energy consumption?," Energy Economics, Elsevier, vol. 98(C).
    6. Ren, Siyu & Hao, Yu & Wu, Haitao, 2022. "The role of outward foreign direct investment (OFDI) on green total factor energy efficiency: Does institutional quality matters? Evidence from China," Resources Policy, Elsevier, vol. 76(C).
    7. Ye, Jiangfeng & Wan, Qunchao & Li, Ruida & Yao, Zhu & Huang, Dujuan, 2022. "How do R&D agglomeration and economic policy uncertainty affect the innovative performance of Chinese high-tech industry?," Technology in Society, Elsevier, vol. 69(C).
    8. Razzaq, Asif & Ajaz, Tahseen & Li, Jing Claire & Irfan, Muhammad & Suksatan, Wanich, 2021. "Investigating the asymmetric linkages between infrastructure development, green innovation, and consumption-based material footprint: Novel empirical estimations from highly resource-consuming economi," Resources Policy, Elsevier, vol. 74(C).
    9. Yu Hao & Yunxia Guo & Haitao Wu, 2022. "The role of information and communication technology on green total factor energy efficiency: Does environmental regulation work?," Business Strategy and the Environment, Wiley Blackwell, vol. 31(1), pages 403-424, January.
    10. Xue, Yan & Tang, Chang & Wu, Haitao & Liu, Jianmin & Hao, Yu, 2022. "The emerging driving force of energy consumption in China: Does digital economy development matter?," Energy Policy, Elsevier, vol. 165(C).
    11. Tao Ma & Xiaoxi Cao, 2022. "FDI, technological progress, and green total factor energy productivity: evidence from 281 prefecture cities in China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(9), pages 11058-11088, September.
    12. Lin, Boqiang & Huang, Chenchen, 2023. "How will promoting the digital economy affect electricity intensity?," Energy Policy, Elsevier, vol. 173(C).
    13. Yi Liang & Xiaoli Hao, 2022. "Can the Agglomeration of New Energy Industries Improve Environmental Efficiency?—Evidence from China," Sustainability, MDPI, vol. 14(14), pages 1-22, July.
    14. Wan, Qunchao & Tang, Shiyi & Jiang, Zhenwu, 2023. "Does the development of digital technology contribute to the innovation performance of China's high-tech industry？," Technovation, Elsevier, vol. 124(C).
    15. Wu, Haitao & Xia, Yufeng & Yang, Xiaodong & Hao, Yu & Ren, Siyu, 2021. "Does environmental pollution promote China's crime rate? A new perspective through government official corruption," Structural Change and Economic Dynamics, Elsevier, vol. 57(C), pages 292-307.
    16. Huiling Liu & Jianhua Zhang & Hongyun Huang & Haitao Wu & Yu Hao, 2023. "Environmental good exports and green total factor productivity: Lessons from China," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(3), pages 1681-1703, June.
    17. Hanxiao Wei & Huiqin Yao, 2022. "Environmental Regulation, Roundabout Production, and Industrial Structure Transformation and Upgrading: Evidence from China," Sustainability, MDPI, vol. 14(7), pages 1-17, March.
    18. Tang, Chang & Xue, Yan & Wu, Haitao & Irfan, Muhammad & Hao, Yu, 2022. "How does telecommunications infrastructure affect eco-efficiency? Evidence from a quasi-natural experiment in China," Technology in Society, Elsevier, vol. 69(C).
    19. Hao, Yu & Li, Ying & Guo, Yunxia & Chai, Jingxia & Yang, Chuxiao & Wu, Haitao, 2022. "Digitalization and electricity consumption: Does internet development contribute to the reduction in electricity intensity in China?," Energy Policy, Elsevier, vol. 164(C).
    20. Gai, Zhiqiang & Guo, Yunxia & Hao, Yu, 2022. "Can internet development help break the resource curse? Evidence from China," Resources Policy, Elsevier, vol. 75(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:teinso:v:68:y:2022:i:c:s0160791x21003195. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/technology-in-society .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.