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Development Zones and Firm Innovation: Evidence from Shanghai

Author

Listed:
  • Hanzhen OUYANG

    (Fudan Development Institute, Fudan University, No. 220 Handan Road, Yangpu District, Shanghai 200433, China)

  • Chang LI

    (School of Economics and Management, Hebei University of Science and Technology, No. 26, Yuxiang Street, Shijiazhuang City, Hebei Province 050018, China)

  • Guangwei LIU

    (Institute for Six-Sector Economy, Fudan University, No. 220 Handan Road, Yangpu District, Shanghai 200433, China)

  • Mingxin ZHANG

    (Tailong Finance School, Zhejiang Gongshang University, 18 Xuezheng Street, Qiantang New District, Hangzhou, Zhejiang Province 310018, China)

  • Brice Tseen Fu LEE

    (School of International Relations and Public Affairs, Fudan University, No. 220 Handan Road, Yangpu District, Shanghai 200433, P. R. China)

Abstract

A majority of Chinese high-tech firms were founded in development zones established by the Chinese government. It is necessary to identify the impacts of development zones on firms’ innovation (hereinafter referred to as “innovation effects†) as well as the possible knowledge spillover of development zones. Different types of zones, due to their different administrative levels and original purposes of establishment, may have different innovation effects. In this paper, the innovation effects of the Shanghai development zones are identified by using the geographic range of Shanghai development zones as well as geographic coordinates, patents, and research and development (R&D) data of manufacturing firms. The research results robustly show that there are significant and positive innovation effects of development zones. Through the use of regression analysis and by using firm data on both sides of zone boundaries, we observe knowledge spillovers. We also test a possible mechanism for the innovation effects of development zones.

Suggested Citation

  • Hanzhen OUYANG & Chang LI & Guangwei LIU & Mingxin ZHANG & Brice Tseen Fu LEE, 2022. "Development Zones and Firm Innovation: Evidence from Shanghai," Chinese Journal of Urban and Environmental Studies (CJUES), World Scientific Publishing Co. Pte. Ltd., vol. 10(04), pages 1-27, December.
    • Handle: RePEc:wsi:cjuesx:v:10:y:2022:i:04:n:s2345748122500282
    DOI: 10.1142/S2345748122500282
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