IDEAS home Printed from https://ideas.repec.org/a/ire/issued/v29n012026p41-76.html

Innovation, Regional Growth, and Housing Prices: Do Housing Prices Affect Local Innovation?

Author

Listed:
  • Yifan Wang

    (Hanyang University, Ansan Kyunggi-do, South Korea)

  • Imho Kang

    (Hanyang University, Ansan Kyunggi-do, South Korea)

  • Changha Jin

    (Hanyang University, Ansan Kyunggi-do, South Korea)

Abstract

In this study, we examine the effect of regional innovation with the number of registered patents as a proxy for innovation on regional growth in South Korea. We use economic and housing price data from 17 regions from 2012 to 2021 to examine the interrelationships among housing market and local innovation and regional growth. We adopt the 2-stage least squares method to overcome the endogeneity issue of our regional growth and housing price models while controlling for housing price appreciation and regional specific characteristics. Our findings reveal that while innovation has a significantly positive effect on both the local residential real estate market and regional growth, housing price does not affect regional innovation. We find that a 1% increase in patents increases the gross regional domestic product per capita by 0.188%. Innovation has a positive impact on the housing market, with a 10% increase in patent increases leading to an increase of 0.329% in housing prices. Our findings have a policy implication: innovative activity stimulates regional growth and innovation driven growth increases housing demand, thus emphasizing the need to ensure housing affordability and adequate supply.

Suggested Citation

  • Yifan Wang & Imho Kang & Changha Jin, 2026. "Innovation, Regional Growth, and Housing Prices: Do Housing Prices Affect Local Innovation?," International Real Estate Review, Global Social Science Institute, vol. 29(1), pages 41-76.
    • Handle: RePEc:ire:issued:v:29:n:01:2026:p:41-76
    DOI: 10.53383/100416
    as

    Download full text from publisher

    File URL: https://doi.org/10.53383/100416
    File Function: Full text
    Download Restriction: no
    File URL: https://libkey.io/10.53383/100416?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    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:ire:issued:v:29:n:01:2026:p:41-76. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: IRER Graduate Assistant/Webmaster (email available below). General contact details of provider: https://www.gssinst.org/gssinst/index.html .

    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.