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Agglomeration economies and firm R&D efforts: an analysis of China’s electronics and telecommunications industries

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  • Peng Zhang
  • Canfei He
  • Yifei Sun

Abstract

China is on the way toward an innovation-oriented economy as well as a manufacturing powerhouse. R&D investments play a central role in improving China’s industrial competitiveness. This study conducts empirical analysis to test the role of agglomeration economies in R&D efforts using plant-level data of the electronic and telecommunication equipment manufacturing industry in 2007. Statistical results suggest that both localization and urbanization economies significantly affect firm R&D. Downstream sectors are the major driving force of business R&D. Downstream firms are more likely to generate externalities than upstream ones. Upstream and midstream agglomerations even generate negative externalities due to preemption. Copyright Springer-Verlag Berlin Heidelberg 2014

Suggested Citation

  • Peng Zhang & Canfei He & Yifei Sun, 2014. "Agglomeration economies and firm R&D efforts: an analysis of China’s electronics and telecommunications industries," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(3), pages 671-701, November.
    • Handle: RePEc:spr:anresc:v:53:y:2014:i:3:p:671-701
    DOI: 10.1007/s00168-014-0638-9
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    Cited by:

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    2. Meihong Dai & Xianneng Li & Yuduo Lu, 2017. "How Urbanization Economies Impact TFP of R&D Performers: Evidence from China," Sustainability, MDPI, vol. 9(10), pages 1-17, September.
    3. Gao, Xing & Meng, Jing & Ling, Yantao & Liao, Maolin & Cao, Mengqiu, 2022. "Localisation economies, intellectual property rights protection and entrepreneurship in China: A Bayesian analysis of multi-level spatial correlation," Structural Change and Economic Dynamics, Elsevier, vol. 61(C), pages 156-165.
    4. Gao, Xing & Meng, Jing & Ling, Yantao & Liao, Maolin & Cao, Mengqiu, 2022. "Localisation economies, intellectual property rights protection and entrepreneurship in China: a Bayesian analysis of multi-level spatial correlation," LSE Research Online Documents on Economics 114290, London School of Economics and Political Science, LSE Library.

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    More about this item

    Keywords

    D22; L63; O32; R12;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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