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Why high-speed rail causes heterogeneous spatial patterns in firm innovation: Perspectives from intensive and extensive margins

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  • Longfei Zheng
  • Huasheng Zhu
  • Kwok Yuen Fan
  • Zheng Chang

Abstract

This study examines the impact of high-speed rail (HSR) on corporate innovation in China, analyzing county-level patent applications. Utilizing difference-in-differences regression, we break down the overall impact of HSR connectivity on innovation into two categories: extensive margins, where a greater number of firms become innovative, and intensive margins, where individual firms increase their level of innovation. HSR access has increased patent applications, particularly in manufacturing and non-high-tech services, affecting both margins. However, in high-tech services, the impact is significant only on the extensive margin. Effects vary between urban areas and peripheral counties, with knowledge spillovers and brain drain as key predictors.

Suggested Citation

  • Longfei Zheng & Huasheng Zhu & Kwok Yuen Fan & Zheng Chang, 2024. "Why high-speed rail causes heterogeneous spatial patterns in firm innovation: Perspectives from intensive and extensive margins," PLOS ONE, Public Library of Science, vol. 19(10), pages 1-19, October.
    • Handle: RePEc:plo:pone00:0311621
    DOI: 10.1371/journal.pone.0311621
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    1. Chang, Zheng & Peng, Zhiyu & Diao, Mi & Zheng, Longfei, 2025. "How does high-speed rail reshape the spatial distribution of service activities? Evidence from the firm data in China," Transport Policy, Elsevier, vol. 167(C), pages 16-27.
    2. Zheng, Longfei & Xue, Yutong & Huang, Daquan, 2025. "Inter-city transport hubs and intra-city polycentric structure: Evidence from high-speed rail stations and airports in China," Journal of Transport Geography, Elsevier, vol. 123(C).

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