The role of regional knowledge spillovers on China's innovation
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.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Adam B. Jaffe & Manuel Trajtenberg & Rebecca Henderson, 1993.
"Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 108(3), pages 577-598.
- Jaffe, A.B. & Trajtenberg, M., 1992. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," Papers 14-92, Tel Aviv.
- Adam B. Jaffe & Manuel Trajtenberg & Rebecca Henderson, 1992. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," NBER Working Papers 3993, National Bureau of Economic Research, Inc.
- Hu, Albert Guangzhou & Jefferson, Gary H., 2009. "A great wall of patents: What is behind China's recent patent explosion?," Journal of Development Economics, Elsevier, vol. 90(1), pages 57-68, September.
- Harry H. Kelejian & Ingmar R. Prucha, 1995.
"A Generalized Moments Estimator for the Autoregressive Parameter in a Spatial Model,"
Electronic Working Papers
95-001, University of Maryland, Department of Economics, revised Mar 1997.
- Kelejian, Harry H & Prucha, Ingmar R, 1999. "A Generalized Moments Estimator for the Autoregressive Parameter in a Spatial Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 40(2), pages 509-33, May.
- Chen, Kun & Kenney, Martin, 2007. "Universities/Research Institutes and Regional Innovation Systems: The Cases of Beijing and Shenzhen," World Development, Elsevier, vol. 35(6), pages 1056-1074, June.
- Sternitzke, Christian, 2010. "Knowledge sources, patent protection, and commercialization of pharmaceutical innovations," Research Policy, Elsevier, vol. 39(6), pages 810-821, July.
- Paul Krugman, 1990.
"Increasing Returns and Economic Geography,"
NBER Working Papers
3275, National Bureau of Economic Research, Inc.
- Jaffe, Adam B, 1989. "Real Effects of Academic Research," American Economic Review, American Economic Association, vol. 79(5), pages 957-70, December.
- Grossman, Gene M. & Helpman, Elhanan, 1991.
"Trade, knowledge spillovers, and growth,"
European Economic Review,
Elsevier, vol. 35(2-3), pages 517-526, April.
- Huang, Can & Wu, Yilin, 2012.
"State-led Technological Development: A Case of China’s Nanotechnology Development,"
Elsevier, vol. 40(5), pages 970-982.
- Huang, Can & Wu, Yilin, 2011. "State-led technological development: A case of China's nanotechnology development," MERIT Working Papers 013, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
- Acs, Zoltan J. & Anselin, Luc & Varga, Attila, 2002. "Patents and innovation counts as measures of regional production of new knowledge," Research Policy, Elsevier, vol. 31(7), pages 1069-1085, September.
- Harry H. Kelejian & Ingmar R. Prucha, 2008.
"Specification and Estimation of Spatial Autoregressive Models with Autoregressive and Heteroskedastic Disturbances,"
CESifo Working Paper Series
2448, CESifo Group Munich.
- Kelejian, Harry H. & Prucha, Ingmar R., 2010. "Specification and estimation of spatial autoregressive models with autoregressive and heteroskedastic disturbances," Journal of Econometrics, Elsevier, vol. 157(1), pages 53-67, July.
- Grossman, G.M. & Helpman, E., 1989.
"Trade; Innovation; And Growth,"
154, Princeton, Woodrow Wilson School - Public and International Affairs.
- Peter Thompson, 2006. "Patent Citations and the Geography of Knowledge Spillovers: Evidence from Inventor- and Examiner-added Citations," The Review of Economics and Statistics, MIT Press, vol. 88(2), pages 383-388, May.
- Rosina Moreno & Raffaele Paci & Stefano Usai, 2005.
"Geographical and sectoral clusters of innovation in Europe,"
The Annals of Regional Science,
Springer;Western Regional Science Association, vol. 39(4), pages 715-739, December.
- RM. Serrano & R. Paci & S. Usai, 2004. "Geographical and sectoral clusters of innovation in Europe," Working Paper CRENoS 200415, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
- Bong‐Soo Lee & Jiangang Peng & Guanzheng Li & Jing He, 2012. "Regional Economic Disparity, Financial Disparity, and National Economic Growth: Evidence from China," Review of Development Economics, Wiley Blackwell, vol. 16(2), pages 342-358, 05.
- Ping Zheng, 2011. "The determinants of disparities in inward FDI flows to the three macro-regions of China," Post-Communist Economies, Taylor & Francis Journals, vol. 23(2), pages 257-270.
- Audretsch, David B. & Feldman, Maryann P., 2004. "Knowledge spillovers and the geography of innovation," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 61, pages 2713-2739 Elsevier.
- Anselin, Luc & Varga, Attila & Acs, Zoltan, 1997. "Local Geographic Spillovers between University Research and High Technology Innovations," Journal of Urban Economics, Elsevier, vol. 42(3), pages 422-448, November.
- Harry H. Kelejian & Ingmar R. Prucha, 1997.
"A Generalized Spatial Two Stage Least Squares Procedure for Estimating a Spatial Autoregressive Model with Autoregressive Disturbances,"
Electronic Working Papers
97-002, University of Maryland, Department of Economics, revised Aug 1997.
- Kelejian, Harry H & Prucha, Ingmar R, 1998. "A Generalized Spatial Two-Stage Least Squares Procedure for Estimating a Spatial Autoregressive Model with Autoregressive Disturbances," The Journal of Real Estate Finance and Economics, Springer, vol. 17(1), pages 99-121, July.
- Laura Bottazzi & Giovanni Peri, .
"Innovation and Spillovers in Regions: Evidence from European Patent Data,"
215, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- Bottazzi, Laura & Peri, Giovanni, 2003. "Innovation and spillovers in regions: Evidence from European patent data," European Economic Review, Elsevier, vol. 47(4), pages 687-710, August.
- Cheung Kui-yin & Lin, Ping, 2004. "Spillover effects of FDI on innovation in China: Evidence from the provincial data," China Economic Review, Elsevier, vol. 15(1), pages 25-44.
- Paul M. Romer, 1994. "The Origins of Endogenous Growth," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 3-22, Winter.
- Wendy Dobson & A.E. Safarian, 2008. "Making the Transition from Imitation to Innovation: An Enquiry into China’s Evolving Institutions and Firm Capabilities," Working Papers Series 11, Rotman Institute for International Business, Joseph L. Rotman School of Management, University of Toronto, revised Mar 2008.
- Paul M Romer, 1999.
"Increasing Returns and Long-Run Growth,"
Levine's Working Paper Archive
2232, David K. Levine.
- Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
- Irani Arraiz & David M. Drukker & Harry H. Kelejian & Ingmar R. Prucha, 2010.
"A Spatial Cliff-Ord-Type Model With Heteroskedastic Innovations: Small And Large Sample Results,"
Journal of Regional Science,
Wiley Blackwell, vol. 50(2), pages 592-614.
- Irani Arraiz & David M. Drukker & Harry H. Kelejian & Ingmar R. Prucha, 2008. "A Spatial Cliff-Ord-type Model with Heteroskedastic Innovations: Small and Large Sample Results," CESifo Working Paper Series 2485, CESifo Group Munich.
- Acs, Zoltan J & Audretsch, David B & Feldman, Maryann P, 1992. "Real Effects of Academic Research: Comment," American Economic Review, American Economic Association, vol. 82(1), pages 363-67, March.
- Zhong, Hai, 2011. "Returns to higher education in China: What is the role of college quality?," China Economic Review, Elsevier, vol. 22(2), pages 260-275, June.
- Kenneth Arrow, 1962. "Economic Welfare and the Allocation of Resources for Invention," NBER Chapters, in: The Rate and Direction of Inventive Activity: Economic and Social Factors, pages 609-626 National Bureau of Economic Research, Inc.
- Lung-Fei Lee, 2004. "Asymptotic Distributions of Quasi-Maximum Likelihood Estimators for Spatial Autoregressive Models," Econometrica, Econometric Society, vol. 72(6), pages 1899-1925, November.
- Ding, Sai & Knight, John, 2009. "Can the augmented Solow model explain China's remarkable economic growth? A cross-country panel data analysis," Journal of Comparative Economics, Elsevier, vol. 37(3), pages 432-452, September.
- Cabrer-Borras, Bernardi & Serrano-Domingo, Guadalupe, 2007. "Innovation and R&D spillover effects in Spanish regions: A spatial approach," Research Policy, Elsevier, vol. 36(9), pages 1357-1371, November.
- J. Barkley Rosser, 2009. "Introduction," Chapters, in: Handbook of Research on Complexity, chapter 1 Edward Elgar Publishing.
- Giovanni Peri, 2005. "Determinants of Knowledge Flows and Their Effect on Innovation," The Review of Economics and Statistics, MIT Press, vol. 87(2), pages 308-322, May.
- Vernon Henderson, J., 2007. "Understanding knowledge spillovers," Regional Science and Urban Economics, Elsevier, vol. 37(4), pages 497-508, July.
When requesting a correction, please mention this item's handle: RePEc:eee:chieco:v:23:y:2012:i:4:p:1164-1175. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.