Innovation, Regional Growth, and Housing Prices: Do Housing Prices Affect Local Innovation?

Yifan Wang (), Imho Kang () and Changha Jin ()
Additional contact information
Yifan Wang: Hanyang University, Ansan Kyunggi-do, South Korea
Imho Kang: Hanyang University, Ansan Kyunggi-do, South Korea
Changha Jin: Hanyang University, Ansan Kyunggi-do, South Korea

International Real Estate Review, 2026, vol. 29, issue 1, 41-76

Abstract: In this study, we examine the effect of regional innovation with the number of registered patents as a proxy for innovation on regional growth in South Korea. We use economic and housing price data from 17 regions from 2012 to 2021 to examine the interrelationships among housing market and local innovation and regional growth. We adopt the 2-stage least squares method to overcome the endogeneity issue of our regional growth and housing price models while controlling for housing price appreciation and regional specific characteristics. Our findings reveal that while innovation has a significantly positive effect on both the local residential real estate market and regional growth, housing price does not affect regional innovation. We find that a 1% increase in patents increases the gross regional domestic product per capita by 0.188%. Innovation has a positive impact on the housing market, with a 10% increase in patent increases leading to an increase of 0.329% in housing prices. Our findings have a policy implication: innovative activity stimulates regional growth and innovation driven growth increases housing demand, thus emphasizing the need to ensure housing affordability and adequate supply.

Keywords: Regional growth; Housing price; Housing market; Patent; Innovation (search for similar items in EconPapers)
Date: 2026
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.53383/100416 Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ire:issued:v:29:n:01:2026:p:41-76

Ordering information: This journal article can be ordered from
Global Social Science Institute, 9200 Corporate Blvd., Suite 420 Rockville, MD 20850
https://www.gssinst.org/gssinst/index.html

Access Statistics for this article

International Real Estate Review is currently edited by Professor Sing Tien Foo and Professor Ko Wang

More articles in International Real Estate Review from Global Social Science Institute Global Social Science Institute, 9200 Corporate Blvd., Suite 420 Rockville, MD 20850.
Bibliographic data for series maintained by IRER Graduate Assistant/Webmaster ().