Effects of high-tech industrial agglomeration and innovation on regional economic development in China: Evidence from spatial-temporal analysis and Spatial Durbin Model

Donglan Huang, Guoteng Xu, Chengjiang Li and Shu Yang

Economic Analysis and Policy, 2025, vol. 86, issue C, 692-712

Abstract: The high-tech industry is an essential driving force for global manufacturing and significantly impacts regional economic development in developing countries. This study examines the spatiotemporal patterns of high-tech industrial innovation and agglomeration based on the panel data of 30 provinces in China from 2012 to 2022. It also investigates their impacts on regional economic development by applying Dagum's Gini coefficient, location entropy, and the spatial Durbin model. The study mainly finds that: (1) The spatial distribution of innovation is uneven; (2) Agglomeration in some regions did not correspond to high levels of innovation; (3) Innovation harms neighboring regions' economies; (4) Agglomeration promotes local and neighboring economic development; (5) Significant regional heterogeneity in the impact of innovation and agglomeration on economic development. The study provides a framework for industry development in regional economic growth, aiding local government decision-making and offering insights for similar development strategies in other countries.

Keywords: High-tech industries; Regional economic development; Innovation; Industrial agglomeration; Spatial Durbin Model (SDM) (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:86:y:2025:i:c:p:692-712

DOI: 10.1016/j.eap.2025.04.005

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