IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v11y2019i18p4840-d264251.html
   My bibliography  Save this article

Geographical Concentration of Knowledge- and Technology-Intensive Industries and City Innovation in China

Author

Listed:
  • Honggang Qi

    (Institute of Geographic Sciences and Natural Resources Research, Chinese Academy of Sciences, Beijing 100101, China
    Key Laboratory of Regional Sustainable Development Modeling, Chinese Academy of Sciences, Beijing 100101, China
    College of Resources and Environment, University of Chinese Academy of Sciences, Beijing 100049, China)

  • Shenghe Liu

    (Institute of Geographic Sciences and Natural Resources Research, Chinese Academy of Sciences, Beijing 100101, China
    Key Laboratory of Regional Sustainable Development Modeling, Chinese Academy of Sciences, Beijing 100101, China
    College of Resources and Environment, University of Chinese Academy of Sciences, Beijing 100049, China)

  • Wei Qi

    (Institute of Geographic Sciences and Natural Resources Research, Chinese Academy of Sciences, Beijing 100101, China
    Key Laboratory of Regional Sustainable Development Modeling, Chinese Academy of Sciences, Beijing 100101, China
    College of Resources and Environment, University of Chinese Academy of Sciences, Beijing 100049, China)

  • Zhen Liu

    (Institute of Geographic Sciences and Natural Resources Research, Chinese Academy of Sciences, Beijing 100101, China
    Key Laboratory of Regional Sustainable Development Modeling, Chinese Academy of Sciences, Beijing 100101, China
    College of Resources and Environment, University of Chinese Academy of Sciences, Beijing 100049, China)

Abstract

Economic transformation and re-industrialization constantly change the geographical landscape of knowledge- and technology-intensive industries (KTI) globally, and the role of KTI agglomeration in city innovation is becoming increasingly decisive. Based on the employment data with a two-digit code in China’s 2010 Population Census, this paper compares the spatial difference between absolute and relative concentration of knowledge-intensive business service (KIBS) and technology-intensive manufacturing (TIM) in prefecture-level units, and interprets the diverse impact of KIBS and TIM specialisation on innovation in 286 prefecture-level cities. Results indicate that KIBS is concentrated mainly in the provincial capital cities, while the level of KIBS specialisation exceeds the national average in some border cities of the northwestern region and resource-based cities of the northeastern region. Unlike KIBS, TIM is highly concentrated in the Yangtze River Delta, the Pearl River Delta, and the Beijing–Tianjin and Shandong Peninsula urban agglomerations. KIBS specialisation matters more in boosting city innovation than does TIM specialisation, and TIM specialization exerts a significant positive spatial spillover effect on city innovation. Our empirical results could be considered by policy-makers for the development of KTI and the promotion of city innovation.

Suggested Citation

  • Honggang Qi & Shenghe Liu & Wei Qi & Zhen Liu, 2019. "Geographical Concentration of Knowledge- and Technology-Intensive Industries and City Innovation in China," Sustainability, MDPI, vol. 11(18), pages 1-20, September.
  • Handle: RePEc:gam:jsusta:v:11:y:2019:i:18:p:4840-:d:264251
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/11/18/4840/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/11/18/4840/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Xing Shi & Yanrui Wu & Dingtao Zhao, 2014. "Knowledge intensive business services and their impact on innovation in China," Service Business, Springer;Pan-Pacific Business Association, vol. 8(4), pages 479-498, December.
    2. Andrew Chadwick & John Glasson & Helen Lawton Smith, 2008. "Employment Growth in Knowledge-Intensive Business Services in Great Britain during the 1990s — Variations at the Regional and Sub-Regional Level," Local Economy, London South Bank University, vol. 23(1), pages 6-18, February.
    3. C. Michael Wernerheim & Christopher Sharpe, 2003. ""High Order' Producer Services in Metropolitan Canada: How Footloose Are They?," Regional Studies, Taylor & Francis Journals, vol. 37(5), pages 469-490.
    4. Dan Zheng & Tatsuaki Kuroda, 2013. "The impact of economic policy on industrial specialization and regional concentration of China’s high-tech industries," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 50(3), pages 771-790, June.
    5. C. Cindy Fan & Allen J. Scott, 2003. "Industrial Agglomeration and Development: A Survey of Spatial Economic Issues in East Asia and a Statistical Analysis of Chinese Regions," Economic Geography, Taylor & Francis Journals, vol. 79(3), pages 295-319, July.
    6. Nicoletta Corrocher & Lucia Cusmano, 2014. "The 'KIBS Engine' of Regional Innovation Systems: Empirical Evidence from European Regions," Regional Studies, Taylor & Francis Journals, vol. 48(7), pages 1212-1226, July.
    7. Francisco Mas-Verdú & Anthony Wensley & Martin Alba & José García Álvarez-Coque, 2011. "How much does KIBS contribute to the generation and diffusion of innovation?," Service Business, Springer;Pan-Pacific Business Association, vol. 5(3), pages 195-212, September.
    8. Devereux, Michael P. & Griffith, Rachel & Simpson, Helen, 2004. "The geographic distribution of production activity in the UK," Regional Science and Urban Economics, Elsevier, vol. 34(5), pages 533-564, September.
    9. Feldman, Maryann P. & Audretsch, David B., 1999. "Innovation in cities:: Science-based diversity, specialization and localized competition," European Economic Review, Elsevier, vol. 43(2), pages 409-429, February.
    10. Jaffe, Adam B, 1989. "Real Effects of Academic Research," American Economic Review, American Economic Association, vol. 79(5), pages 957-970, December.
    11. Glaeser, Edward L & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1992. "Growth in Cities," Journal of Political Economy, University of Chicago Press, vol. 100(6), pages 1126-1152, December.
      • Edward L. Glaeser & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1991. "Growth in Cities," NBER Working Papers 3787, National Bureau of Economic Research, Inc.
      • Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
    12. Ning, Lutao & Wang, Fan & Li, Jian, 2016. "Urban innovation, regional externalities of foreign direct investment and industrial agglomeration: Evidence from Chinese cities," Research Policy, Elsevier, vol. 45(4), pages 830-843.
    13. Rosina Moreno & Raffaele Paci & Stefano Usai, 2006. "Innovation Clusters in the European Regions," European Planning Studies, Taylor & Francis Journals, vol. 14(9), pages 1235-1263, May.
    14. Junjie Hong & Shihe Fu, 2011. "Information and Communication Technologies and the Geographical Concentration of Manufacturing Industries," Urban Studies, Urban Studies Journal Limited, vol. 48(11), pages 2339-2354, August.
    15. Olga Alonso-Villar & Jose-MarIa Chamorro-Rivas & Xulia Gonzalez-Cerdeira, 2004. "Agglomeration economies in manufacturing industries: the case of Spain," Applied Economics, Taylor & Francis Journals, vol. 36(18), pages 2103-2116.
    16. Orsa Kekezi & Johan Klaesson, 2020. "Agglomeration and innovation of knowledge intensive business services," Industry and Innovation, Taylor & Francis Journals, vol. 27(5), pages 538-561, May.
    17. Zvi Griliches, 1998. "Issues in Assessing the Contribution of Research and Development to Productivity Growth," NBER Chapters, in: R&D and Productivity: The Econometric Evidence, pages 17-45, National Bureau of Economic Research, Inc.
    18. repec:rre:publsh:v:34:y:2004:i:1:p:11-36 is not listed on IDEAS
    19. Breandan O Huallachain & Der-Shiuan Lee, 2011. "Technological Specialization and Variety in Urban Invention," Regional Studies, Taylor & Francis Journals, vol. 45(1), pages 67-88.
    20. Lutao Ning & Fan Wang, 2018. "Does FDI Bring Environmental Knowledge Spillovers to Developing Countries? The Role of the Local Industrial Structure," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 71(2), pages 381-405, October.
    21. Yuandi Wang & Lutao Ning & Jian Li & Martha Prevezer, 2016. "Foreign Direct Investment Spillovers and the Geography of Innovation in Chinese Regions: The Role of Regional Industrial Specialization and Diversity," Regional Studies, Taylor & Francis Journals, vol. 50(5), pages 805-822, May.
    22. Kirsi Mukkala, 2004. "Agglomeration economies in the finnish manufacturing sector," Applied Economics, Taylor & Francis Journals, vol. 36(21), pages 2419-2427.
    23. Santamara, Llus & Nieto, Mara Jess & Barge-Gil, Andrs, 2009. "Beyond formal R&D: Taking advantage of other sources of innovation in low- and medium-technology industries," Research Policy, Elsevier, vol. 38(3), pages 507-517, April.
    24. Jun Koo, 2007. "Determinants of Localized Technology Spillovers: Role of Regional and Industrial Attributes," Regional Studies, Taylor & Francis Journals, vol. 41(7), pages 995-1011.
    25. Björn Alecke & Christoph Alsleben & Frank Scharr & Gerhard Untiedt, 2006. "Are there really high-tech clusters? The geographic concentration of German manufacturing industries and its determinants," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 40(1), pages 19-42, March.
    26. Henderson, Vernon & Kuncoro, Ari & Turner, Matt, 1995. "Industrial Development in Cities," Journal of Political Economy, University of Chicago Press, vol. 103(5), pages 1067-1090, October.
    27. Jorge Gallego & Andr�s Maroto, 2015. "The Specialization in Knowledge-Intensive Business Services (KIBS) across Europe: Permanent Co-Localization to Debate," Regional Studies, Taylor & Francis Journals, vol. 49(4), pages 644-664, April.
    28. Audretsch, David B & Feldman, Maryann P, 1996. "R&D Spillovers and the Geography of Innovation and Production," American Economic Review, American Economic Association, vol. 86(3), pages 630-640, June.
    29. William J. Coffey & Réjean Drolet & Mario Polèse, 1996. "The Intrametropolitan Location Of High Order Services: Patterns, Factors And Mobility In Montreal," Papers in Regional Science, Wiley Blackwell, vol. 75(3), pages 293-323, July.
    30. Muller, Emmanuel & Zenker, Andrea, 2001. "Business services as actors of knowledge transformation: the role of KIBS in regional and national innovation systems," Research Policy, Elsevier, vol. 30(9), pages 1501-1516, December.
    31. Wang, Cassandra C. & Wu, Aiqi, 2016. "Geographical FDI knowledge spillover and innovation of indigenous firms in China," International Business Review, Elsevier, vol. 25(4), pages 895-906.
    32. Fernando Merino & Luis Rubalcaba, 2013. "Are Knowledge-intensive Services Highly Concentrated? Evidence from European Regions," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 104(2), pages 215-232, April.
    33. Arne Isaksen, 2004. "Knowledge-based Clusters and Urban Location: The Clustering of Software Consultancy in Oslo," Urban Studies, Urban Studies Journal Limited, vol. 41(5-6), pages 1157-1174, May.
    34. Olof Ejermo, 2005. "Technological Diversity and Jacobs’ Externality Hypothesis Revisited," Growth and Change, Wiley Blackwell, vol. 36(2), pages 167-195, June.
    35. Matthias Buerger & Uwe Cantner, 2011. "The regional dimension of sectoral innovativeness: An empirical investigation of two specialized suppliers and two science‐based industries," Papers in Regional Science, Wiley Blackwell, vol. 90(2), pages 373-393, June.
    36. Guerrieri, Paolo & Meliciani, Valentina, 2005. "Technology and international competitiveness: The interdependence between manufacturing and producer services," Structural Change and Economic Dynamics, Elsevier, vol. 16(4), pages 489-502, December.
    37. Shunzhong Liu, 2012. "The relationship between strategic type and new service development competence: a study of Chinese knowledge intensive business services," Service Business, Springer;Pan-Pacific Business Association, vol. 6(2), pages 157-175, June.
    38. Cui Zhang, 2016. "Agglomeration of knowledge intensive business services and urban productivity," Papers in Regional Science, Wiley Blackwell, vol. 95(4), pages 801-818, November.
    39. Dan O'Donoghue & Bill Gleave, 2004. "A Note on Methods for Measuring Industrial Agglomeration," Regional Studies, Taylor & Francis Journals, vol. 38(4), pages 419-427.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Edvins Karnitis & Janis Bicevskis & Girts Karnitis & Maris Pukis, 2021. "Sustainable Development Model of EU Cities Compliant with UN Settings," Mathematics, MDPI, vol. 9(22), pages 1-18, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ning, Lutao & Wang, Fan & Li, Jian, 2016. "Urban innovation, regional externalities of foreign direct investment and industrial agglomeration: Evidence from Chinese cities," Research Policy, Elsevier, vol. 45(4), pages 830-843.
    2. Matthias Firgo & Peter Mayerhofer, 2016. "Wissensintensive Unternehmensdienste, Wissens-Spillovers und regionales Wachstum. Teilprojekt 3: Zur Standortstruktur von wissensintensiven Unternehmensdiensten – Fakten, Bestimmungsgründe, regionalpo," WIFO Studies, WIFO, number 59427, April.
    3. Matthias Firgo & Peter Mayerhofer, 2015. "Wissens-Spillovers und regionale Entwicklung - welche strukturpolitische Ausrichtung optimiert des Wachstum?," Working Paper Reihe der AK Wien - Materialien zu Wirtschaft und Gesellschaft 144, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik.
    4. Beaudry, Catherine & Schiffauerova, Andrea, 2009. "Who's right, Marshall or Jacobs? The localization versus urbanization debate," Research Policy, Elsevier, vol. 38(2), pages 318-337, March.
    5. Matthias Firgo & Peter Mayerhofer, 2015. "Wissensintensive Unternehmensdienste, Wissens-Spillovers und regionales Wachstum. Teilprojekt 1: Wissens-Spillovers und regionale Entwicklung – Welche strukturpolitische Ausrichtung optimiert das Wach," WIFO Studies, WIFO, number 58342, April.
    6. Lutao Ning & Fan Wang, 2018. "Does FDI Bring Environmental Knowledge Spillovers to Developing Countries? The Role of the Local Industrial Structure," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 71(2), pages 381-405, October.
    7. Seungil Yum, 2019. "The interaction between knowledge-intensive business services and urban economy," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 63(1), pages 53-83, August.
    8. Yuandi Wang & Lutao Ning & Jian Li & Martha Prevezer, 2016. "Foreign Direct Investment Spillovers and the Geography of Innovation in Chinese Regions: The Role of Regional Industrial Specialization and Diversity," Regional Studies, Taylor & Francis Journals, vol. 50(5), pages 805-822, May.
    9. Rakas, Marija & Hain, Daniel S., 2019. "The state of innovation system research: What happens beneath the surface?," Research Policy, Elsevier, vol. 48(9), pages 1-1.
    10. 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.
    11. Thomas Doring & Jan Schnellenbach, 2006. "What do we know about geographical knowledge spillovers and regional growth?: A survey of the literature," Regional Studies, Taylor & Francis Journals, vol. 40(3), pages 375-395.
    12. Sam Tavassoli & Nunzia Carbonara, 2014. "The role of knowledge variety and intensity for regional innovation," Small Business Economics, Springer, vol. 43(2), pages 493-509, August.
    13. Kleoniki Kalapouti & Nikos Varsakelis, 2015. "Intra and inter: regional knowledge spillovers in European Union," The Journal of Technology Transfer, Springer, vol. 40(5), pages 760-781, October.
    14. Carlino, Gerald & Kerr, William R., 2015. "Agglomeration and Innovation," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 349-404, Elsevier.
    15. GUILLAIN, Rachel & HURIOT, Jean-Marie, 1999. "How information shapes cities: theory and facts," LATEC - Document de travail - Economie (1991-2003) 1999-05, LATEC, Laboratoire d'Analyse et des Techniques EConomiques, CNRS UMR 5118, Université de Bourgogne.
    16. Jan Ženka & Josef Novotný & Ondřej Slach & Igor Ivan, 2017. "Spatial Distribution of Knowledge-Intensive Business Services in a Small Post-Communist Economy," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 8(2), pages 385-406, June.
    17. Valentina Meliciani & Maria Savona, 2015. "The determinants of regional specialisation in business services: agglomeration economies, vertical linkages and innovation," Journal of Economic Geography, Oxford University Press, vol. 15(2), pages 387-416.
    18. Haifeng Qian, 2018. "Knowledge-Based Regional Economic Development: A Synthetic Review of Knowledge Spillovers, Entrepreneurship, and Entrepreneurial Ecosystems," Economic Development Quarterly, , vol. 32(2), pages 163-176, May.
    19. Gerald A. Carlino & Satyajit Chatterjee & Robert M. Hunt, 2001. "Knowledge spillovers and the new economy of cities," Working Papers 01-14, Federal Reserve Bank of Philadelphia.
    20. Garcia-Quevedo, Jose, 2000. "University Research And The Location Of Innovative Activities In Spain," ERSA conference papers ersa00p178, European Regional Science Association.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:11:y:2019:i:18:p:4840-:d:264251. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.