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Booming house prices: friend or foe of innovative firms?

Author

Listed:
  • Zhen Chu

    (Shanghai Normal University)

  • Xuanwei Chen

    (Tongji University)

  • Mingwang Cheng

    (Tongji University)

  • Xin Zhao

    (Anhui University of Finance and Economics)

  • Zhouxiang Wang

    (Anhui University)

Abstract

Using threshold and quantile regression methods, this paper explores the nonlinear relationship between housing prices and corporate innovation. In our sample, we find that a single threshold exists when the growth rate of housing prices is at 2.82%, above which the negative impact of housing prices on corporate innovation significantly increases. Results from the quantile regression further suggest that corporate innovation suffers from a stronger negative effect of surging housing prices when firms are at a lower level of innovation. Therefore, policymakers designing innovation policy should consider that housing price beyond certain levels is a nonnegligible obstacle to corporate innovative activity, especially for firms with insufficient enthusiasm for innovation.

Suggested Citation

  • Zhen Chu & Xuanwei Chen & Mingwang Cheng & Xin Zhao & Zhouxiang Wang, 2024. "Booming house prices: friend or foe of innovative firms?," The Journal of Technology Transfer, Springer, vol. 49(2), pages 642-659, April.
    • Handle: RePEc:kap:jtecht:v:49:y:2024:i:2:d:10.1007_s10961-023-10005-1
    DOI: 10.1007/s10961-023-10005-1
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    More about this item

    Keywords

    Housing prices; Corporate innovation; Threshold regression; Quantile regression;
    All these keywords.

    JEL classification:

    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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