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Proximity Matters: Inter‐Regional Knowledge Spillovers and Regional Industrial Diversification in China

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  • Canfei He
  • Shengjun Zhu
  • Xuqian Hu
  • Yunxiong Li

Abstract

The effects of knowledge spillovers from neighbouring regions on regional industrial diversification should not be overlooked. Here we are referring to not only intra‐industry knowledge spillovers from neighbouring regions, but also the spread of knowledge from related industries in neighbouring regions. This paper also develops an analytical framework that pays more attention to the role of institutional proximity between regions and how it is associated with geographical and cognitive proximity, and acknowledges that institutional proximity may generate asymmetric effects in the process of inter‐regional knowledge spillovers. Using the Chinese custom database during 2002–11, we confirm that knowledge spillovers from neighbouring regions play a key role in regional industrial diversification. More importantly, inter‐regional knowledge spillovers are likely to occur more efficiently if two regions have similar institutional contexts. It is also shown that institutional proximity could generate asymmetric effects in inter‐regional knowledge spillovers.

Suggested Citation

  • Canfei He & Shengjun Zhu & Xuqian Hu & Yunxiong Li, 2019. "Proximity Matters: Inter‐Regional Knowledge Spillovers and Regional Industrial Diversification in China," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 110(2), pages 173-190, April.
    • Handle: RePEc:bla:tvecsg:v:110:y:2019:i:2:p:173-190
    DOI: 10.1111/tesg.12345
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    Cited by:

    1. Jin, Wenwan & Zhu, Shengjun, 2023. "High-speed rail network and regional convergence/divergence in industrial structure," Socio-Economic Planning Sciences, Elsevier, vol. 87(PA).
    2. Qiliang Mao & Xianzhuang Mao, 2021. "Cultural barriers, institutional distance, and spatial spillovers: Evidence from regional industrial evolution in China," Growth and Change, Wiley Blackwell, vol. 52(3), pages 1440-1481, September.
    3. Ziliang Liu & Shengjun Zhu, 2021. "Changing institutional context and regional industrial dynamics: New evidence from the establishment of administrative approval centers in China," Growth and Change, Wiley Blackwell, vol. 52(3), pages 1271-1294, September.

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