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The power of wings: How air connections fuel cross-regional collaboration in China?

Author

Listed:
  • Chen, Jiahui
  • Shi, Jinchuan
  • Wang, Zheng
  • Zeng, Shirong
  • Zhou, Zhuo

Abstract

How does physical connectedness stimulate knowledge cocreation? This paper sheds new light on this question by focusing on China, one of the largest countries and innovation powerhouses in the world. Exploiting variation in air connectivity across time and space, we find that the introduction of non-stop air connections between cities boosts collaborative innovation, especially for long-distance city pairs. This improvement goes with reducing costs of face-to-face interactions, hence promoting knowledge flows. Further analysis shows that the disparity of within-city-pair innovative capability shrinks following direct air connections. The effects on co-innovation are more pronounced for collaborations: (1) between mega-and small cities, (2) involving at least one cost-sensitive enterprise participant, and (3) across corporate group boundaries among enterprise innovators.

Suggested Citation

  • Chen, Jiahui & Shi, Jinchuan & Wang, Zheng & Zeng, Shirong & Zhou, Zhuo, 2025. "The power of wings: How air connections fuel cross-regional collaboration in China?," China Economic Review, Elsevier, vol. 92(C).
    • Handle: RePEc:eee:chieco:v:92:y:2025:i:c:s1043951x25001002
    DOI: 10.1016/j.chieco.2025.102442
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    Keywords

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    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation

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