Innovation and Spillovers in China:Spatial Econometric Approach
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This paper examines spatial dependence in China’s regional innovationusing the spatial econometric approach. Dataset covers 30Chinese provinces for the period from 2000 to 2009. The main findingsare as follows: First, an interdependent and simultaneous influentialrelation in regional innovation is observed in most of thespatial panel models. Second, R&D activity significantly affects regionalinnovation. The effect of entrepreneurial activity on innovation isgenerally lower than that of R&D. In addition, the indirect spillovereffect of R&D activity and entrepreneurial activity among adjacentprovinces is limited. Third, the spillover effect of R&D and entrepreneurialactivity among provinces diminishes with distance based onthe regression analysis that formulated spatial weight matrixes forthree different range segments. That is, the spillover effect of entrepreneurialactivity is limited by spatial proximity, and the spillover effectof R&D activity is attenuated by the increase in distance.
Abstract
This paper examines spatial dependence in China’s regional innovationusing the spatial econometric approach. Dataset covers 30Chinese provinces for the period from 2000 to 2009. The main findingsare as follows: First, an interdependent and simultaneous influentialrelation in regional innovation is observed in most of thespatial panel models. Second, R&D activity significantly affects regionalinnovation. The effect of entrepreneurial activity on innovation isgenerally lower than that of R&D. In addition, the indirect spillovereffect of R&D activity and entrepreneurial activity among adjacentprovinces is limited. Third, the spillover effect of R&D and entrepreneurialactivity among provinces diminishes with distance based onthe regression analysis that formulated spatial weight matrixes forthree different range segments. That is, the spillover effect of entrepreneurialactivity is limited by spatial proximity, and the spillover effectof R&D activity is attenuated by the increase in distance.
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