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The power of wings: How air connections fuel cross-regional collaboration in China?

Jiahui Chen, Jinchuan Shi, Zheng Wang, Shirong Zeng and Zhuo Zhou

China Economic Review, 2025, vol. 92, issue C

Abstract: How does physical connectedness stimulate knowledge cocreation? This paper sheds new light on this question by focusing on China, one of the largest countries and innovation powerhouses in the world. Exploiting variation in air connectivity across time and space, we find that the introduction of non-stop air connections between cities boosts collaborative innovation, especially for long-distance city pairs. This improvement goes with reducing costs of face-to-face interactions, hence promoting knowledge flows. Further analysis shows that the disparity of within-city-pair innovative capability shrinks following direct air connections. The effects on co-innovation are more pronounced for collaborations: (1) between mega-and small cities, (2) involving at least one cost-sensitive enterprise participant, and (3) across corporate group boundaries among enterprise innovators.

Keywords: Air connectivity; Collaborative innovation; Urban innovation; Knowledge flows (search for similar items in EconPapers)
JEL-codes: L93 O18 O31 R11 R41 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:chieco:v:92:y:2025:i:c:s1043951x25001002

DOI: 10.1016/j.chieco.2025.102442

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China Economic Review is currently edited by B.M. Fleisher, K. X. D. Huang, M.E. Lovely, Y. Wen, X. Zhang and X. Zhu

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