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The Territorial Dynamics Of Innovation In China And India

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  • Crescenzi, Riccardo
  • Rodriguez-Pose, Andres
  • Storper, Michael

Abstract

This paper analyses the geography of innovation in China and India. Using a tailor-made panel database for regions in these two countries, we show that both countries exhibit increasingly strong polarisation of innovative capacity in a limited number of urban areas. But the factors behind this polarisation and the strong contrasts in innovative capacity between the provinces and states within both countries are quite different. In China, the concentration of innovation is fundamentally driven by agglomeration forces, linked to population, industrial specialisation and infrastructure endowment. Innovative areas in China, rather than generate knowledge spillovers, seem to produce strong backwash effects. In India, by contrast, innovation is much more dependent on a combination of good local socioeconomic structures and investment in science and technology. Indian innovation hubs also generate positive knowledge spillovers to other regions.

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  • Crescenzi, Riccardo & Rodriguez-Pose, Andres & Storper, Michael, 2012. "The Territorial Dynamics Of Innovation In China And India," CEPR Discussion Papers 9038, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:9038
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    Cited by:

    1. Lema, Rasmus & Quadros, Ruy & Schmitz, Hubert, 2015. "Reorganising global value chains and building innovation capabilities in Brazil and India," Research Policy, Elsevier, vol. 44(7), pages 1376-1386.
    2. Crescenzi, Riccardo & Jaax, Alexander, 2017. "Innovation in Russia: the territorial dimension," LSE Research Online Documents on Economics 66948, London School of Economics and Political Science, LSE Library.
    3. Zukauskaite , Elena & Plechero , Monica & Trippl , Michaela, 2016. "Institutional Thickness Revisited," Papers in Innovation Studies 2016/1, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
    4. Scherngell, Thomas & Borowiecki, Martin & Hu, Yuanjia, 2014. "Effects of knowledge capital on total factor productivity in China: A spatial econometric perspective," China Economic Review, Elsevier, vol. 29(C), pages 82-94.
    5. Rey, Sergio, 2016. "Space-time patterns of rank concordance: Local indicators of mobility association with application to spatial income inequality dynamics," MPRA Paper 69480, University Library of Munich, Germany.
    6. De Noni, Ivan & Ganzaroli, Andrea & Orsi, Luigi, 2017. "The impact of intra- and inter-regional knowledge collaboration and technological variety on the knowledge productivity of European regions," Technological Forecasting and Social Change, Elsevier, vol. 117(C), pages 108-118.
    7. Alkemade, Floortje & Heimeriks, Gaston & Schoen, Antoine & Villard, Lionel & Laurens, Patricia, 2015. "Tracking the internationalization of multinational corporate inventive activity: national and sectoral characteristics," Research Policy, Elsevier, vol. 44(9), pages 1763-1772.
    8. Riccardo Crescenzi & Andrés Rodríguez-Pose, 2012. "An ‘Integrated’ Framework For The Comparative Analysis Of The Territorial Innovation Dynamics Of Developed And Emerging Countries," Journal of Economic Surveys, Wiley Blackwell, vol. 26(3), pages 517-533, July.
    9. Martin Borowiecki & Karl-Heinz Leitner, 2015. "Determinants of new business formation in China: Regional evidence from a panel data model," ERSA conference papers ersa15p598, European Regional Science Association.
    10. Tavassoli, Sam & Carbonara, Nunzia, 2013. "The Role of Knowledge Variety and Intensity for Regional Innovative Capability," Working Papers 2013/01, Blekinge Institute of Technology, Department of Industrial Economics.
    11. Riccardo Crescenzi & Alexander Jaax, 2015. "Innovation in Russia: the territorial dimension," Papers in Evolutionary Economic Geography (PEEG) 1509, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Apr 2015.
    12. Chaminade , Cristina & Padilla Pérez , Ramón, 2014. "The challenge of alignment and barriers for the design and implementation of science, technology and innovation policies for innovation systems in developing countries," Papers in Innovation Studies 2014/26, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
    13. Riccardo Crescenzi & Carlo Pietrobelli & Roberta Rabellotti, 2014. "Innovation drivers, value chains and the geography of multinational corporations in Europe," Journal of Economic Geography, Oxford University Press, vol. 14(6), pages 1053-1086.
    14. Riccardo Crescenzi, 2014. "The evolving dialogue between Innovation and Economic Geography. From physical distance to non-spatial proximities and 'integrated' frameworks," Papers in Evolutionary Economic Geography (PEEG) 1408, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Mar 2014.
    15. Conti, Giuliano & Lo Turco, Alessia & Maggioni, Daniela, 2014. "Spillovers through backward linkages and the export performance of business services. Evidence from a sample of Italian firms," International Business Review, Elsevier, vol. 23(3), pages 552-565.
    16. Chaminade , Cristina & Plechero , Monica, 2015. "The role of geographical proximity in the international knowledge flows of European firms: an overview of different knowledge transfer mechanisms," Papers in Innovation Studies 2015/30, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
    17. Jesús Peiró-Palomino, 2016. "European regional convergence revisited: the role of intangible assets," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 57(1), pages 165-194, July.
    18. Zhang, Min & Partridge, Mark & Song, Huasheng, 2018. "Amenities and Geography of Innovation: Evidence from Chinese Cities," MPRA Paper 83673, University Library of Munich, Germany.
    19. Sylvie Charlot & Riccardo Crescenzi & Antonio Musolesi, 2014. "Augmented and Unconstrained: revisiting the Regional Knowledge Production Function," SEEDS Working Papers 2414, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Aug 2014.
    20. Sam Tavassoli & Nunzia Carbonara, 2014. "The role of knowledge variety and intensity for regional innovation," Small Business Economics, Springer, vol. 43(2), pages 493-509, August.
    21. Anil Nair & Orhun Guldiken & Stav Fainshmidt & Amir Pezeshkan, 2015. "Innovation in India: A review of past research and future directions," Asia Pacific Journal of Management, Springer, vol. 32(4), pages 925-958, December.
    22. Davide Castellani, 2017. "The Changing Geography of Innovation and the Role of Multinational Enterprises," John H Dunning Centre for International Business Discussion Papers jhd-dp2017-02, Henley Business School, Reading University.
    23. Cristina Chaminade & Claudia De Fuentes & Gouya Harirchi & Monica Plechero, 2016. "The geography and structure of global innovation networks: global scope and regional embeddedness," Chapters,in: Handbook on the Geographies of Innovation, chapter 22, pages 370-381 Edward Elgar Publishing.
    24. Cristina Chaminade & Claudia De Fuentes & Gouya Harirchi & Monica Plechero, 2016. "The geography and structure of global innovation networks: global scope and regional embeddedness," Chapters,in: Handbook on the Geographies of Innovation, chapter 22, pages 370-381 Edward Elgar Publishing.

    More about this item

    Keywords

    China; Geography; India; Innovation; R&; D; Regions; Socioeconomic conditions;

    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
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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