Knowledge Spillovers Within China’s System of Research Institutes

We use a novel, fifteen-year panel dataset on China’s system of research institutes to examine the determinates of knowledge production, the role external factors play in increasing research productivity, and the extent to which distance mitigates these spillovers. We find robust evidence that knowledge inputs like R&D personnel increase patenting and publication. External R&D spending in the institute’s province and the institute’s industry knowledge stock spill over into increased knowledge production. We find that being located on average farther from institutes engaged in similar research reduces the impact of these spillovers. These results have important policy implications as China attempts to increase economic activity away from the coast and aims to improve the productivity of its research institute sector.