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The role of regional knowledge spillovers on China's innovation

Author

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  • Shang, Qingyan
  • Poon, Jessie P.H.
  • Yue, Qingtang

Abstract

The new economic geography has increased attention on the spatial dimension of knowledge spillovers and innovation. In this paper, we test the hypothesis that regional knowledge spillovers positively influence China's innovation growth from 2001 to 2008. As knowledge is subjected to spatial decay, innovation of a region is enhanced when location in neighboring regions encourages the formation of regional knowledge and information flows. Applying a spatial autoregressive model to China's provinces, the paper finds that regional knowledge spillovers have a favorable effect on design, invention and utility patents. This indicates that proximate location to innovative neighbors can help to raise the innovation capability of a province. In addition, evidence also shows that R&D expenditure and skilled personnel of research institutes and universities positively affect invention and utility patents. This suggests a favorable role for the government in enhancing indigenous innovation capability.

Suggested Citation

  • Shang, Qingyan & Poon, Jessie P.H. & Yue, Qingtang, 2012. "The role of regional knowledge spillovers on China's innovation," China Economic Review, Elsevier, vol. 23(4), pages 1164-1175.
  • Handle: RePEc:eee:chieco:v:23:y:2012:i:4:p:1164-1175
    DOI: 10.1016/j.chieco.2012.08.004
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    6. Xiong, Ailun & Xia, Senmao & Ye, Zhen Peter & Cao, Dongmei & Jing, Yanguo & Li, Hongyi, 2020. "Can innovation really bring economic growth? The role of social filter in China," Structural Change and Economic Dynamics, Elsevier, vol. 53(C), pages 50-61.
    7. Yadav, Anil & McHale, John & O'Neill, Stephen, 2023. "How does co-authoring with a star affect scientists' productivity? Evidence from small open economies," Research Policy, Elsevier, vol. 52(1).
    8. Pan, Xiuzhen & Wei, Zixiang & Han, Botang & Shahbaz, Muhammad, 2021. "The heterogeneous impacts of interregional green technology spillover on energy intensity in China," Energy Economics, Elsevier, vol. 96(C).
    9. Shicong XU & Abdoul G. SAM, 2021. "Diversity Or Specializarion? Understanding Knowledge Spillover Mechanisms In China," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 225-238, June.
    10. Takanori Minamikawa, 2018. "Evaluation of the sophistication of Chinese industries using the information-geometric decomposition approach," Discussion papers 1801 Classification- C02,, ERINA - Economic Research Institute for Northeast Asia, revised Apr 2018.
    11. Zhang, Gupeng & Zhou, Jianghua, 2016. "The effects of forward and reverse engineering on firm innovation performance in the stages of technology catch-up: An empirical study of China," Technological Forecasting and Social Change, Elsevier, vol. 104(C), pages 212-222.
    12. Gao, Kang & Yuan, Yijun, 2022. "Government intervention, spillover effect and urban innovation performance: Empirical evidence from national innovative city pilot policy in China," Technology in Society, Elsevier, vol. 70(C).
    13. Cai Zhou & Bowen Li, 2023. "How does e‐commerce demonstration city improve urban innovation? Evidence from China," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 31(4), pages 915-940, October.
    14. Huang Xiaobing & Meng Xinxin & Chen Meng, 2022. "A Study of Knowledge Spillovers within Chinese Mega-Economic Zones," Economics - The Open-Access, Open-Assessment Journal, De Gruyter, vol. 16(1), pages 16-26, January.
    15. Samandar Ali Eshtehardi, Mojgan & Bagheri, Seyed Kamran & Di Minin, Alberto, 2017. "Regional innovative behavior: Evidence from Iran," Technological Forecasting and Social Change, Elsevier, vol. 122(C), pages 128-138.
    16. Xionghe Qin & Debin Du & Mei-Po Kwan, 2019. "Spatial spillovers and value chain spillovers: evaluating regional R&D efficiency and its spillover effects in China," Scientometrics, Springer;Akadémiai Kiadó, vol. 119(2), pages 721-747, May.
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    More about this item

    Keywords

    Innovation; Regional knowledge spillovers; Research institutes and universities; Spatial autoregressive model; China;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • 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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