Title: Spatial dependence in knowledge spillover of innovative activity: evidence from China

Authors: Ikjoon Moon; Sungho Rho

Addresses: Department of Economics, School of Economics and Management, Tsinghua University, Beijing 100084, China. ' Department of Innovation and Entrepreneurship, School of Economics and Management, Tsinghua University, Beijing 100084, China

Abstract: This paper investigates how innovative activity affects GDP growth in China's regional economy with spatial econometric approach. Dataset covers 30 provinces over 2001 to 2009 in China. The results of the regression show clearly the contribution of entrepreneurial activities to economic growth. In addition, such activities are observed to influence the adjacencies' economic growth though limitedly. However, the effect of R&D activities on economic growth is not significant either directly or indirectly. And we observe significant positive direct effect, but negative indirect effect of physical input on regional growth. In addition, as most of spatial econometric models show a high correlation of economic growth among adjacent provinces, this paper confirms the spatial dependency of spillover effect.

Keywords: entrepreneurial activity; R&D activity; research and development; regional growth; spatial panel data model; China; spatial dependence; knowledge spillover; innovative activity; innovation; GDP; global domestic product; economic growth; entrepreneurship.

DOI: 10.1504/IJKBD.2012.048381

International Journal of Knowledge-Based Development, 2012 Vol.3 No.3, pp.234 - 249

Received: 17 Oct 2011
Accepted: 30 Mar 2012
Published online: 31 Jul 2014 *

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