Impact of National Technology Transfer Markets on Entrepreneurship in China

Abstract

This study investigates how the construction of technology transfer markets in China can affect local entrepreneurial activity. Using new firm registration data from the State Administration for Industry and Commerce of China, the analysis treated the establishment of national technology transfer centers (NTTCs) as a quasi-natural experiment and employed a staggered difference-in-differences approach. The results indicate that the establishment of NTTCs has a positive impact on entrepreneurship. Robustness checks supported a causal interpretation of the results. The primary mechanisms identified were increased availability of entrepreneurial resources and improvements in the local entrepreneurial environment. The effects were more pronounced in technology-intensive manufacturing and producer service industries, and in cities with lower administrative status and higher levels of financial development. Further analysis revealed that NTTCs contribute to economic growth by promoting entrepreneurship. The results have policy implications for government-led development of technology transfer markets.