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Technological spillover through industrial and regional linkages: Firm-level evidence from China

Yong Hu, Karen Fisher-Vanden and Baozhong Su

Economic Modelling, 2020, vol. 89, issue C, 523-545

Abstract: This paper provides new insights into the study of technology spillover effects through the interaction between industrial and spatial linkages. We develop a theoretical model that provides a useful modeling framework for spillover research, and then empirically test the model inferences using Chinese firm-level data. Input-output tables and spatial decay measurements are combined to construct the key spillover variables. Using seemingly unrelated regressions, the paper finds that vertical spillover effects are more significant than horizontal spillover effects, both within- and between-regions; regional characteristics have greater impacts on vertical spillovers than on horizontal spillovers; and regional spillover effects vary across different regions. Regional policies and regional endowments, including human capital, transportation infrastructure, and enterprise ownership, are crucial in explaining these heterogeneities in regional technology spillover. Our empirical results provide many policy implications including strengthening the connection between upstream and downstream industries and devoting more R&D to upstream industries.

Keywords: Regional spillover; Industrial linkage spillover; Internal technology expenditure; Imported technology expenditure; FDI; China (search for similar items in EconPapers)
JEL-codes: O33 R11 R58 (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1016/j.econmod.2019.11.018

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