Asymmetric spatial competition and dynamics in digitalization: Will public R&D support and marketization exacerbate spatial polarization?

This paper investigates the asymmetric spatial spillover effects of digital development across different types of cities. The results of the two-regime spatial Durbin models, using the panel data of 279 cities in China from 2011 to 2021, reveal the spatial polarization phenomenon in digitalization, where stronger cities such as smart cities, provincial capitals, and port cities become more dominant while weaker cities struggle to catch up. Increasing public R&D support leads to positive spatial spillover effects but exacerbates the spatial “Matthew effect” of digitalization. Additionally, marketization plays a moderating role by enhancing resource allocation efficiency and suppressing negative spatial spillover effects. Higher levels of marketization result in smaller digital gaps between cities. The findings provide valuable insights for decision-makers and stakeholders seeking to foster balanced and inclusive urban development in the digital age.