Industrial Agglomeration and Enterprise Innovation Sustainability: Empirical Evidence from the Chinese A-Share Market

Xuemeng Guo, Ke Guo () and Hanzhong Zheng
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Xuemeng Guo: School of Economics and Management, Beijing Jiaotong University, Beijing 100044, China
Ke Guo: School of Economics and Management, Beijing Jiaotong University, Beijing 100044, China
Hanzhong Zheng: School of Economics and Management, Beijing Jiaotong University, Beijing 100044, China

Sustainability, 2023, vol. 15, issue 15, 1-26

Abstract: The data from 285 prefecture-level cities in China are selected as research samples from 2005 to 2021, using the panel data of listed companies. The empirical study examines the impact of regional industrial agglomeration levels on enterprise innovation sustainability and its heterogeneity effects. The findings reveal that industrial agglomeration in the manufacturing sector significantly hampers enterprise innovation sustainability, while agglomeration in the producer services sector promotes it. Mechanism analysis demonstrates that industrial agglomeration affects enterprise innovation sustainability through the micro-conductive mechanism of financial constraints. Heterogeneity analysis shows that the impact of manufacturing agglomeration on enterprise innovation sustainability is more pronounced in technology-intensive and high-end technology industries, whereas the impact of producer services agglomeration varies significantly in knowledge-intensive and resource-intensive industries. Furthermore, heterogeneity analysis suggests that the influence of industrial agglomeration on enterprise innovation sustainability varies according to different firm characteristics. These research findings contribute to a deeper understanding of the microeconomic effects of industrial agglomeration and expand the research perspective on the internal mechanisms and external factors driving sustainable corporate innovation.

Keywords: industrial agglomeration; enterprise innovation sustainability; manufacturing; producer services; innovation quality; innovation efficiency (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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