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Domestic and International Cross-regional Development and Enterprise Innovation: Perspective of Spatial Circulation

Author

Listed:
  • Xinyi Gao
  • Siyuan Dong
  • Yiling Zhang
  • Jun Huang

Abstract

Based on the resource base theory and spatial circulation perspective, this study explores the impact of domestic and international cross-regional development on enterprise innovation from the dimension of enterprise cross-regional development. The study finds that (a) both domestic and international cross-regional development can promote enterprise innovation. (b) The intensity of domestic cross-regional development positively moderates the relationship between the scale of domestic cross-regional development and enterprise innovation, while the intensity of international cross-regional development negatively moderates the relationship between the scale of international cross-regional development and enterprise innovation. (c) Mechanism research finds that domestic cross-regional development promotes enterprise innovation mainly through the diffusion effect, while international cross-regional development promotes enterprise innovation mainly through the absorption effect. (d) Industry-specific heterogeneity analysis shows that the effect is significantly stronger in high-tech manufacturing firms than in traditional manufacturing firms, suggesting that firms in innovation-intensive industries benefit more from cross-regional expansion. Country-specific heterogeneity analysis shows that the effect is more pronounced in culturally distant host countries, highlighting the critical role of institutional and cultural contexts in shaping global innovation strategies. JEL Codes: O32, L25, F23

Suggested Citation

  • Xinyi Gao & Siyuan Dong & Yiling Zhang & Jun Huang, 2026. "Domestic and International Cross-regional Development and Enterprise Innovation: Perspective of Spatial Circulation," Journal of Emerging Market Finance, Institute for Financial Management and Research, vol. 25(1), pages 58-86, March.
    • Handle: RePEc:sae:emffin:v:25:y:2026:i:1:p:58-86
    DOI: 10.1177/09726527251369555
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    Keywords

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    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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