Agglomeration economies and firm R&D efforts: an analysis of China’s electronics and telecommunications industries

Peng Zhang (), Canfei He () and Yifei Sun ()

The Annals of Regional Science, 2014, vol. 53, issue 3, 701 pages

Abstract: China is on the way toward an innovation-oriented economy as well as a manufacturing powerhouse. R&D investments play a central role in improving China’s industrial competitiveness. This study conducts empirical analysis to test the role of agglomeration economies in R&D efforts using plant-level data of the electronic and telecommunication equipment manufacturing industry in 2007. Statistical results suggest that both localization and urbanization economies significantly affect firm R&D. Downstream sectors are the major driving force of business R&D. Downstream firms are more likely to generate externalities than upstream ones. Upstream and midstream agglomerations even generate negative externalities due to preemption. Copyright Springer-Verlag Berlin Heidelberg 2014

Keywords: D22; L63; O32; R12 (search for similar items in EconPapers)
Date: 2014
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DOI: 10.1007/s00168-014-0638-9

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