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Understanding the Impact of Spatial Externalities on Two-Stage R&D Efficiency: Empirical Evidence from 285 Chinese Prefecture-Level Cities

Author

Listed:
  • Xionghe Qin

    (Hefei University of Technology)

  • Dong Zhang

    (Hefei University of Technology)

  • Debin Du

    (East China Normal University
    East China Normal University)

Abstract

This study applies a spatial Durbin model to empirically investigate the impacts of local agglomeration, regional adjacency, and inter-regional network externalities on research and development (R&D) efficiency employing datasets of 285 Chinese prefecture-level cities covering the period of 2004 to 2020. This highlights the importance of understanding the different types of spatial externalities from a two-stage R&D perspective. The sequential stages of R&D process were identified as knowledge creation and technology transfer with each stage displaying significant spatial heterogeneity in the prefecture-level cities that were assessed. Inter-regional network externalities were shown to be more advantageous for knowledge creation efficiency, whereas local agglomeration externalities exerted a stronger positive influence on technology transfer efficiency. Furthermore, regional adjacency externalities were shown to significantly enhance R&D efficiency, particularly in relation to technology transfer rather than knowledge creation. The findings demonstrate that the significance of local agglomeration, regional adjacency, and inter-regional network externalities varies significantly throughout distinct R&D stages.

Suggested Citation

  • Xionghe Qin & Dong Zhang & Debin Du, 2025. "Understanding the Impact of Spatial Externalities on Two-Stage R&D Efficiency: Empirical Evidence from 285 Chinese Prefecture-Level Cities," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(2), pages 8308-8342, June.
    • Handle: RePEc:spr:jknowl:v:16:y:2025:i:2:d:10.1007_s13132-024-01844-w
    DOI: 10.1007/s13132-024-01844-w
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