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Spatial dependence in knowledge spillover of innovative activity: evidence from China

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  • Ikjoon Moon
  • Sungho Rho

Abstract

This paper investigates how innovative activity affects GDP growth in China's regional economy with spatial econometric approach. Dataset covers 30 provinces over 2001 to 2009 in China. The results of the regression show clearly the contribution of entrepreneurial activities to economic growth. In addition, such activities are observed to influence the adjacencies' economic growth though limitedly. However, the effect of R%D activities on economic growth is not significant either directly or indirectly. And we observe significant positive direct effect, but negative indirect effect of physical input on regional growth. In addition, as most of spatial econometric models show a high correlation of economic growth among adjacent provinces, this paper confirms the spatial dependency of spillover effect.

Suggested Citation

  • Ikjoon Moon & Sungho Rho, 2012. "Spatial dependence in knowledge spillover of innovative activity: evidence from China," International Journal of Knowledge-Based Development, Inderscience Enterprises Ltd, vol. 3(3), pages 234-249.
    • Handle: RePEc:ids:ijkbde:v:3:y:2012:i:3:p:234-249
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