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Does a high-speed railway increase offsite subsidiaries’ innovation output?

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  • Lin Han
  • Xingchan Li
  • Qian Sun

Abstract

This study investigates the impact of opening a high-speed railway (HSR) on the innovation output of offsite subsidiaries in China. Our findings suggest that the innovation output of offsite subsidiaries increases significantly after the opening of HSR between the cities in which the listed firms and their subsidiaries are located, and the results are robust after a series of robustness checks. Hence, the spatiotemporal squeezing effect generated by opening HSR significantly improves the efficiency of information exchange and resource sharing between parent and subsidiary companies, which greatly promotes the innovation output of offsite subsidiaries.

Suggested Citation

  • Lin Han & Xingchan Li & Qian Sun, 2023. "Does a high-speed railway increase offsite subsidiaries’ innovation output?," Applied Economics Letters, Taylor & Francis Journals, vol. 30(21), pages 3083-3087, December.
    • Handle: RePEc:taf:apeclt:v:30:y:2023:i:21:p:3083-3087
    DOI: 10.1080/13504851.2022.2120953
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