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High-technology development zones and innovation in knowledge-intensive service firms: Evidence from Chinese A-share listed firms

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  • Kong, Qunxi
  • Li, Rongrong
  • Peng, Dan
  • Wong, Zoey

Abstract

Academic attention has been increasingly focused on the relationship between the practice of development zones and firm innovation. This paper explores the impact effect and mechanism of the establishment of high-tech development zones on the innovation behavior of knowledge-intensive service enterprises using data from A-share listed companies from 2005 to 2019. It is found that the establishment of high-tech development zones has a significant positive effect on the improvement of innovation capability among knowledge-intensive service enterprises. After mitigating the endogeneity problem, considering the sample selection problem, and conducting other robustness tests, the estimation results still support the baseline findings. Meanwhile, the innovation effect of high-tech zone establishment shows significant heterogeneity. Specifically, the impact of high-technology development zone establishment on firms' innovation capacity is most significant among technology service firms. In addition, the effect of high-tech development zone establishment on firms' innovation capability is more significant if the firms are located in national high-tech zones, or the eastern region, or in regions with high openness. Therefore, regions should actively optimize their upgrading and transformation of existing high-tech zones, strengthen the integration between high-tech zones, and actively guide the innovative development of knowledge-intensive service enterprises in high-tech zones.

Suggested Citation

  • Kong, Qunxi & Li, Rongrong & Peng, Dan & Wong, Zoey, 2021. "High-technology development zones and innovation in knowledge-intensive service firms: Evidence from Chinese A-share listed firms," International Review of Financial Analysis, Elsevier, vol. 78(C).
    • Handle: RePEc:eee:finana:v:78:y:2021:i:c:s1057521921002118
    DOI: 10.1016/j.irfa.2021.101883
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    4. Ji, Mianmian & Lv, Wendai, 2022. "Demonstration zones reform and corporate philanthropy: Evidence from China," Economic Modelling, Elsevier, vol. 115(C).
    5. Lu, Yuchen & Gao, Yuqiang & Zhang, Yu & Wang, Junrong, 2022. "Can the green finance policy force the green transformation of high-polluting enterprises? A quasi-natural experiment based on “Green Credit Guidelines”," Energy Economics, Elsevier, vol. 114(C).
    6. Peng, Dan & Li, Rongrong & Shen, Chenrong & Wong, Zoey, 2022. "Industrial agglomeration, urban characteristics, and economic growth quality: The case of knowledge-intensive business services," International Review of Economics & Finance, Elsevier, vol. 81(C), pages 18-28.
    7. Zhengwen Lu & Yujie Zhang & Yuanxu Li, 2022. "Strategic Charitable Giving and R&D Innovation of High-Tech Enterprises: A Dynamic Perspective Based on the Corporate Life Cycle," Sustainability, MDPI, vol. 14(23), pages 1-20, December.
    8. Zhang, Dongyang & Kong, Qunxi, 2022. "Credit policy, uncertainty, and firm R&D investment: A quasi-natural experiment based on the Green Credit Guidelines," Pacific-Basin Finance Journal, Elsevier, vol. 73(C).

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