Anthony Howell, Robin (Guohuibin) Li, M. Feldman, Haifeng Qian
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Agglomeration, recombinant innovation and the role of market reforms in a transitioning China
ABSTRACT This paper estimates a knowledge production function to study the effects of local spillovers on the patenting activity and new innovation sales of Chinese firms during a period marked by rapid economic reform. We show that local spillovers expected to arise between co-located firms in related industries encourages firm innovation outcomes, especially among firms that diversify their core competencies into new related (versus unrelated) technological domains. Exploiting the gradual and spatially uneven economic transitioning process as a quasi-natural experiment, we find that the positive effects of relatedness on firm innovation are significantly larger in size following more intense market-oriented reforms. The results are potentially relevant for policy-makers in transitioning economies, highlighting for the first time the importance of firms' own diversification process and market-oriented reforms for encouraging innovation-enhancing technological related spillovers.
期刊介绍:
Economics of Innovation and New Technology is devoted to the theoretical and empirical analysis of the determinants and effects of innovation, new technology and technological knowledge. The journal aims to provide a bridge between different strands of literature and different contributions of economic theory and empirical economics. This bridge is built in two ways. First, by encouraging empirical research (including case studies, econometric work and historical research), evaluating existing economic theory, and suggesting appropriate directions for future effort in theoretical work. Second, by exploring ways of applying and testing existing areas of theory to the economics of innovation and new technology, and ways of using theoretical insights to inform data collection and other empirical research. The journal welcomes contributions across a wide range of issues concerned with innovation, including: the generation of new technological knowledge, innovation in product markets, process innovation, patenting, adoption, diffusion, innovation and technology policy, international competitiveness, standardization and network externalities, innovation and growth, technology transfer, innovation and market structure, innovation and the environment, and across a broad range of economic activity not just in ‘high technology’ areas. The journal is open to a variety of methodological approaches ranging from case studies to econometric exercises with sound theoretical modelling, empirical evidence both longitudinal and cross-sectional about technologies, regions, firms, industries and countries.