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Chinese innovation-driving factors: regional structure, innovation effect, and economic development—empirical research based on panel data

Author

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  • Xiafei Chen

    (University of Science and Technology of China)

  • Zhiying Liu

    (University of Science and Technology of China)

  • Chaoliang Ma

    (University of Science and Technology of China)

Abstract

The implementation of innovation-driven strategy is of great significance. Analysis of the driving factors of innovation performance from quantitative and systematic perspectives is needed for policy making. By drawing upon the LMDI model, this study identifies the driving factors and their corresponding contributions in the innovation performance of 30 Chinese provincial-level regions during the period 2000–2012. The innovation performance is decomposed into the regional economic structure effect, R&D intensity effect, innovation efficiency effect, and economic development effect according to the driving mechanism. The results indicate that the third effect in this list, innovation efficiency, contributes the most to innovation performance at 54.28%, followed by the regional R&D intensity at 27.49%, and China’s economic development at 19.92%. The effect of the regional economic structure is negative, at −1.69%. This study further analyzes four major economic areas of China and identifies the channels through which each area conducts their innovation activities. The empirical findings provide information for policy measures to implement innovation-driven strategies.

Suggested Citation

  • Xiafei Chen & Zhiying Liu & Chaoliang Ma, 2017. "Chinese innovation-driving factors: regional structure, innovation effect, and economic development—empirical research based on panel data," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 59(1), pages 43-68, July.
    • Handle: RePEc:spr:anresc:v:59:y:2017:i:1:d:10.1007_s00168-017-0818-5
    DOI: 10.1007/s00168-017-0818-5
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    4. Bakari, Sayef, 2022. "The Impact of Digitalization and Patent on Economic Growth in Romania," MPRA Paper 114259, University Library of Munich, Germany.
    5. Kjell Hausken & John F. Moxnes, 2019. "Innovation, Development and National Indices," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 141(3), pages 1165-1188, February.
    6. Zhang, Liangliang & Huang, Shoujun, 2022. "Social capital and regional innovation efficiency: The moderating effect of governance quality," Structural Change and Economic Dynamics, Elsevier, vol. 62(C), pages 343-359.
    7. Bakari, Sayef, 2022. "The Impact of Natural resources, CO2 Emission, Energy use, Domestic Investment, Innovation, Trade and Digitalization on Economic growth: Evidence from 52 African Countries," MPRA Paper 114323, University Library of Munich, Germany.
    8. Wensheng Xiao & Haojia Kong & Lifan Shi & Valentina Boamah & Decai Tang, 2022. "The Impact of Innovation-Driven Strategy on High-Quality Economic Development: Evidence from China," Sustainability, MDPI, vol. 14(7), pages 1-20, April.
    9. Qian Lu & Chao Hua & Jianjun Miao, 2022. "The Impact of Factor Market Distortion on the Efficiency of Technological Innovation: A Spatial Analysis," Sustainability, MDPI, vol. 14(19), pages 1-15, September.
    10. Eberle, Jonathan & Böing, Philipp, 2019. "Effects of R&D subsidies on regional economic dynamics: Evidence from Chinese provinces," ZEW Discussion Papers 19-038, ZEW - Leibniz Centre for European Economic Research.
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    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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