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Spatial Spillovers of Regional Innovation: Evidence from Chinese Provinces

Huasheng Song and Min Zhang

Emerging Markets Finance and Trade, 2017, vol. 53, issue 9, 2104-2122

Abstract: This article assesses whether and how the effects of spatial spillovers contribute to regional innovation growth in China. Using provincial-level data over the 2003–2011 period and employing a spatial Durbin model (SDM), the empirical results reveal strong spillover effects in both the input and output processes of regional innovation. An area can benefit from innovation in the surrounding areas through channels that include innovation output, R&D input, and agglomeration economies. By contrast, externalities from absorptive capacity are spatially localized, and foreign direct investment (FDI) can lead to negative spillover effects in this context. Moreover, different types of patented innovations exhibit a variety of patterns.

Date: 2017
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DOI: 10.1080/1540496X.2017.1284061

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