Industrial agglomeration and regional innovation in China: a three-stage innovation perspective Online publication date: Fri, 06-May-2022
by Yuliang Zhou; Zhangwen Li; Xinyan Xie
International Journal of Sustainable Development (IJSD), Vol. 24, No. 3/4, 2021
Abstract: This paper divides regional innovation activities into the following three stages: R&D investment, patent output, and new product launch. Based on panel data of 30 provinces of mainland China from 1998 to 2018, an improved innovation factor model is established to empirically analyse the effects and differences of Marshall-Arrow-Romer (MAR), Jacobs, complementarity (DIV), and competitive (COM) externalities on the three-stage regional innovation. The results show that: 1) close technology exchange exists between the eastern and central regions, and the role of technological radiation in the economic centre of the western region is strengthened; 2) Jacobs externality can promote regional innovation activities of high-tech industries and neighbouring provinces, while MAR, DIV, and COM externalities all play negative roles; their effects in the three-stage innovation differ significantly; 3) fixed capital investment, human capital investment, and labour force all promote innovation, but only fixed capital exerts spatial effects.
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