Relocating innovation within firms: The impact of real estate booms on innovation transfer

IF 5.3 2区经济学 Q1 BUSINESS, FINANCE

Pacific-Basin Finance Journal Pub Date : 2025-07-30 DOI:10.1016/j.pacfin.2025.102883

Zhanyu Dong , Xuchao Li , Yingying Li , Jietong Lin

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Abstract

This paper examines how firms adjust internal innovation resources in response to negative shocks, focusing on the impact of surging real estate prices in headquarters cities on the transfer of innovation activities to subsidiaries. Using data on Chinese listed firms from 2007 to 2017, we construct a unique “patent–firm–city” matched database and employ an instrumental variable approach to address endogeneity. We find that higher real estate prices in headquarters cities significantly increase the relocation of innovation resources to subsidiaries in lower-cost cities. Two mechanisms drive this effect: the relocation of R&D financing and of R&D talent. Rising property prices intensify financing constraints, prompting firms to reallocate innovation-related capital, while higher housing costs crowd out skilled labor or raise operational expenses, encouraging talent transfers. Firms more dependent on external financing and with higher concentrations of skilled labor are especially sensitive. Heterogeneity analysis shows stronger effects for invention patents, non-state-owned enterprises, high-tech industries, and cities with weaker public service capacity. Finally, we assess the performance implications of such transfers. While innovation transfer mitigates the adverse impact of property prices on innovation quantity and sustains utility model patenting, it fails to offset the decline in invention patenting, indicating a shift toward less technologically sophisticated and original innovation. This study contributes to the literature on real estate markets and corporate innovation by offering a novel perspective on internal resource reallocation and providing a comprehensive analysis of how firms adjust innovation capital and talent under external pressures.

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企业内部创新转移：房地产繁荣对创新转移的影响

本文考察了企业如何调整内部创新资源以应对负面冲击，重点研究了总部城市房地产价格飙升对创新活动向子公司转移的影响。本文利用2007 - 2017年中国上市公司的数据，构建了一个独特的“专利-企业-城市”匹配数据库，并采用工具变量方法来解决内生性问题。研究发现，总部城市较高的房地产价格显著增加了创新资源向低成本城市子公司的转移。驱动这种效应的机制有两个：研发资金的转移和研发人才的转移。不断上涨的房价加剧了融资约束，促使企业重新配置与创新相关的资本，而更高的住房成本挤出了熟练劳动力或提高了运营成本，鼓励了人才转移。更依赖外部融资、熟练劳动力集中度更高的公司尤其敏感。异质性分析表明，对发明专利、非国有企业、高新技术产业和公共服务能力较弱的城市的影响更强。最后，我们评估了此类转移对绩效的影响。虽然创新转移缓解了产权价格对创新数量的不利影响，并维持了实用新型专利申请，但它未能抵消发明专利申请的减少，表明技术含量较低和原始创新的转变。本研究为房地产市场和企业创新提供了一个全新的内部资源再配置视角，并全面分析了企业如何在外部压力下调整创新资本和人才，从而对房地产市场和企业创新的研究做出了贡献。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Pacific-Basin Finance Journal BUSINESS, FINANCE-

CiteScore

6.80

自引率

6.50%

发文量

157

期刊介绍： The Pacific-Basin Finance Journal is aimed at providing a specialized forum for the publication of academic research on capital markets of the Asia-Pacific countries. Primary emphasis will be placed on the highest quality empirical and theoretical research in the following areas: • Market Micro-structure; • Investment and Portfolio Management; • Theories of Market Equilibrium; • Valuation of Financial and Real Assets; • Behavior of Asset Prices in Financial Sectors; • Normative Theory of Financial Management; • Capital Markets of Development; • Market Mechanisms.