Shadow and spillover: The influence of neighboring innovative cities on regional innovation growth

Abstract

The shadow and spillover effects of large cities are critical for achieving balanced regional economic development. However, empirical studies that explore how major cities influence the innovation growth of their neighboring cities are scarce. This study employs panel data from Chinese cities covering the period from 1996 to 2018 to empirically assess the impact of proximity to cities with comparative innovation advantages on local innovation growth. Our results reveal that until 2005, proximity to innovative core cities negatively affected local innovation growth. This adverse effect gradually diminished over time, becoming significantly positive after 2010. Furthermore, the advent of high-speed rail has played a pivotal role in mitigating the negative impacts of nearby innovative core cities. These findings offer fresh insights into regional innovation ecosystem dynamics and underscore the transformative role of infrastructural developments in bolstering urban innovation capacities.