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Natural resources, urbanization and regional innovation capabilities

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  • Chen, Jian
  • Wang, Lingjun
  • Li, Yuanyuan

Abstract

This paper used panel data of 30 regions/provinces of China from year 2005–2018 to empirically test the impact of abundance of natural resources and urbanization on regional innovation capabilities. The findings from the empirical analysis indicate that (1) the spatial effects on regional innovation capabilities are significant, and cannot be ignored. It shows that the optimal model is a spatial doubly model with dual fixed effects. (2) the richer the natural resources, the more unfavorable is the improvement of the innovation capacity of the region and surrounding areas. Urbanization has improved the region's innovation capabilities at regional level, but it is negatively related to the innovation capabilities of surrounding areas. (3) In terms of control variables, the average years of education is conducive to the improvement of innovation capacity in the region, and negative impact on the innovation capacity of adjacent area. Foreign direct investment (FDI) has promoted the regional innovation capacity in the region and adjacent area. The system has strengthened the regional innovation capacity, but the impact on the surrounding areas has not been significant.

Suggested Citation

  • Chen, Jian & Wang, Lingjun & Li, Yuanyuan, 2020. "Natural resources, urbanization and regional innovation capabilities," Resources Policy, Elsevier, vol. 66(C).
    • Handle: RePEc:eee:jrpoli:v:66:y:2020:i:c:s0301420720300829
    DOI: 10.1016/j.resourpol.2020.101643
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