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The role of regional knowledge spillovers on China's innovation

Author

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  • Shang, Qingyan
  • Poon, Jessie P.H.
  • Yue, Qingtang

Abstract

The new economic geography has increased attention on the spatial dimension of knowledge spillovers and innovation. In this paper, we test the hypothesis that regional knowledge spillovers positively influence China's innovation growth from 2001 to 2008. As knowledge is subjected to spatial decay, innovation of a region is enhanced when location in neighboring regions encourages the formation of regional knowledge and information flows. Applying a spatial autoregressive model to China's provinces, the paper finds that regional knowledge spillovers have a favorable effect on design, invention and utility patents. This indicates that proximate location to innovative neighbors can help to raise the innovation capability of a province. In addition, evidence also shows that R&D expenditure and skilled personnel of research institutes and universities positively affect invention and utility patents. This suggests a favorable role for the government in enhancing indigenous innovation capability.

Suggested Citation

  • Shang, Qingyan & Poon, Jessie P.H. & Yue, Qingtang, 2012. "The role of regional knowledge spillovers on China's innovation," China Economic Review, Elsevier, vol. 23(4), pages 1164-1175.
    • Handle: RePEc:eee:chieco:v:23:y:2012:i:4:p:1164-1175
    DOI: 10.1016/j.chieco.2012.08.004
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    8. Min Zhang & Seung‐hun Chung, 2020. "Is air pollution detrimental to regional innovation? Evidence from Chinese cities," Growth and Change, Wiley Blackwell, vol. 51(4), pages 1657-1689, December.
    9. Samandar Ali Eshtehardi, Mojgan & Bagheri, Seyed Kamran & Di Minin, Alberto, 2017. "Regional innovative behavior: Evidence from Iran," Technological Forecasting and Social Change, Elsevier, vol. 122(C), pages 128-138.
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    More about this item

    Keywords

    Innovation; Regional knowledge spillovers; Research institutes and universities; Spatial autoregressive model; China;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • 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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