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The Annals of Regional Science

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28-02-2017 | Original Paper

Chinese innovation-driving factors: regional structure, innovation effect, and economic development—empirical research based on panel data

Authors: Xiafei Chen, Zhiying Liu, Chaoliang Ma

Published in: The Annals of Regional Science | Issue 1/2017

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Abstract

The implementation of innovation-driven strategy is of great significance. Analysis of the driving factors of innovation performance from quantitative and systematic perspectives is needed for policy making. By drawing upon the LMDI model, this study identifies the driving factors and their corresponding contributions in the innovation performance of 30 Chinese provincial-level regions during the period 2000–2012. The innovation performance is decomposed into the regional economic structure effect, R&D intensity effect, innovation efficiency effect, and economic development effect according to the driving mechanism. The results indicate that the third effect in this list, innovation efficiency, contributes the most to innovation performance at 54.28%, followed by the regional R&D intensity at 27.49%, and China’s economic development at 19.92%. The effect of the regional economic structure is negative, at −1.69%. This study further analyzes four major economic areas of China and identifies the channels through which each area conducts their innovation activities. The empirical findings provide information for policy measures to implement innovation-driven strategies.

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For convenience, we will refer to the administrative provincial-level regions as regions in what follows.

As is common practice, innovation efficiency is defined as the ratio between the composite indicator scores for one or more input dimensions and one or more output dimensions. To be specific, more innovation outputs at the given inputs or less innovation inputs for the same amount of innovation outputs means higher innovation efficiency. This paper defines the ratio between patent applications and R&D expenses as the innovation efficiency.

The East area includes Beijing, Tianjin, Hebei, Shanghai, Jiangsu, Zhejiang, Fujian, Shandong, Guangdong, and Hainan. The Central area includes Shanxi, Anhui, Jiangxi, Henan, Hubei, and Hunan. The West area includes Inner Mongolia, Guangxi, Chongqing, Sichuan, Guizhou, Yunnan, Shaanxi, Gansu, Qinghai, Ningxia, and Xinjiang. The Northeast area includes Liaoning, Jilin, and Heilongjiang (Source: China Statistical Yearbook).

The Social Science Citation Index (SSCI) papers is also widely recognized as the academic achievements from R&D activities. Due to the lack of SSCI data, the current study takes no consideration of SSCI.

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Title: Chinese innovation-driving factors: regional structure, innovation effect, and economic development—empirical research based on panel data
Authors: Xiafei Chen
Zhiying Liu
Chaoliang Ma
Publication date: 28-02-2017
Publisher: Springer Berlin Heidelberg
Published in: The Annals of Regional Science / Issue 1/2017
Print ISSN: 0570-1864
Electronic ISSN: 1432-0592
DOI: https://doi.org/10.1007/s00168-017-0818-5

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