The role of regional knowledge spillovers on China's innovation

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

China Economic Review, 2012, vol. 23, issue 4, 1164-1175

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.

Keywords: Innovation; Regional knowledge spillovers; Research institutes and universities; Spatial autoregressive model; China (search for similar items in EconPapers)
JEL-codes: O31 O53 R11 R12 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (22)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:chieco:v:23:y:2012:i:4:p:1164-1175

DOI: 10.1016/j.chieco.2012.08.004

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