2013•Industrial Engineering and Engineering ManagementRequires access

The Analysis of Regional Innovation Convergence of China from the Perspective of Spatial Effect

Weiwei Zhang

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Abstract

Since Ramsey firstly studied the regional convergence based on the neo-classical economic framework in the early 1900s,the topic had become an important topic for regional evaluative economists.For instance,the convergence of technological innovation activities largely determines the degree of regional economic convergence and their influence has attracted attention from many scholars.However,existing research on the regional innovation convergence has ignored spatial interactions among regions which can not reveal spatial characteristics of regional innovation convergence.The paper studies regional innovation convergence of China by using the spatial econometrics analysis method from the perspective of spatial effect. The Moran's I spatial autocorrelation test shows that there is significant spatial autocorrelation on the regional innovation in China.This finding shows that there are significant spillover and diffusion effects on the regional innovation of China.However,the OLS analysis method previously used to estimate regional innovation convergence of China may have biased the results.Therefore,we shouldn't overlooked the potential spatial effect while testing regional innovation convergence of China. The diagnostic test results of spatial econometric model show that the spatial error model(SEM) is more suitable to estimating the regional innovation convergence of China than the spatial lag model(SAR).SEM test shows that regional innovation of China does not show an absolute β-convergence between 1990 and 2008,but it shows conditional β-convergence.Moreover,economic development level,human capital,RD investment,and openness are important factors to promote regional innovation convergence in China. The test results of regional innovation convergence in China reflect the implementation of non-balanced development strategy,the economic development strategy of western regions,and revitalizing old industrial bases in the northeastern region.After 1999,the rising of central China and other regional development strategy have had a profound impact on the structure of regional innovation in China.Due to the implementation of non-balanced,regional development strategy,such as implementing the Science and Technology System in the 1990s,those regions with comprehensive human capital,foreign investment,RD investment and economic development increase their innovation in the market-oriented system which leads to the accelerated trend of regional innovation in China.Other regional development strategies similar to this strategy include developing western regions,and revitalizing old industrial bases in northern regions. The human capital,foreign investment,R D investment and economic development of the regions with weak innovation haven't been enhanced.Therefore,in order to gradually narrow the gap of regional innovation among China regions,we have to emphasize on the promotion of regional human capital,foreign investment,R D investment and economic development.

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Since Ramsey firstly studied the regional convergence based on the neo-classical economic framework in the early 1900s,the topic had become an important topic for regional evaluative economists.For instance,the convergence of technological innovation activities largely determines the degree of regional economic convergence and their influence has attracted attention from many scholars.However,existing research on the regional innovation convergence has ignored spatial interactions among regions which can not reveal spatial characteristics of regional innovation convergence.The paper studies regional innovation convergence of China by using the spatial econometrics analysis method from the perspective of spatial effect. The Moran's I spatial autocorrelation test shows that there is significant spatial autocorrelation on the regional innovation in China.This finding shows that there are significant spillover and diffusion effects on the regional innovation of China.However,the OLS analysis method previously used to estimate regional innovation convergence of China may have biased the results.Therefore,we shouldn't overlooked the potential spatial effect while testing regional innovation convergence of China. The diagnostic test results of spatial econometric model show that the spatial error model(SEM) is more suitable to estimating the regional innovation convergence of China than the spatial lag model(SAR).SEM test shows that regional innovation of China does not show an absolute β-convergence between 1990 and 2008,but it shows conditional β-convergence.Moreover,economic development level,human capital,RD investment,and openness are important factors to promote regional innovation convergence in China. The test results of regional innovation convergence in China reflect the implementation of non-balanced development strategy,the economic development strategy of western regions,and revitalizing old industrial bases in the northeastern region.After 1999,the rising of central China and other regional development strategy have had a profound impact on the structure of regional innovation in China.Due to the implementation of non-balanced,regional development strategy,such as implementing the Science and Technology System in the 1990s,those regions with comprehensive human capital,foreign investment,RD investment and economic development increase their innovation in the market-oriented system which leads to the accelerated trend of regional innovation in China.Other regional development strategies similar to this strategy include developing western regions,and revitalizing old industrial bases in northern regions. The human capital,foreign investment,R D investment and economic development of the regions with weak innovation haven't been enhanced.Therefore,in order to gradually narrow the gap of regional innovation among China regions,we have to emphasize on the promotion of regional human capital,foreign investment,R D investment and economic development.

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Available abstract

Since Ramsey firstly studied the regional convergence based on the neo-classical economic framework in the early 1900s,the topic had become an important topic for regional evaluative economists.For instance,the convergence of technological innovation activities largely determines the degree of regional economic convergence and their influence has attracted attention from many scholars.However,existing research on the regional innovation convergence has ignored spatial interactions among regions which can not reveal spatial characteristics of regional innovation convergence.The paper studies regional innovation convergence of China by using the spatial econometrics analysis method from the perspective of spatial effect. The Moran's I spatial autocorrelation test shows that there is significant spatial autocorrelation on the regional innovation in China.This finding shows that there are significant spillover and diffusion effects on the regional innovation of China.However,the OLS analysis method previously used to estimate regional innovation convergence of China may have biased the results.Therefore,we shouldn't overlooked the potential spatial effect while testing regional innovation convergence of China. The diagnostic test results of spatial econometric model show that the spatial error model(SEM) is more suitable to estimating the regional innovation convergence of China than the spatial lag model(SAR).SEM test shows that regional innovation of China does not show an absolute β-convergence between 1990 and 2008,but it shows conditional β-convergence.Moreover,economic development level,human capital,RD investment,and openness are important factors to promote regional innovation convergence in China. The test results of regional innovation convergence in China reflect the implementation of non-balanced development strategy,the economic development strategy of western regions,and revitalizing old industrial bases in the northeastern region.After 1999,the rising of central China and other regional development strategy have had a profound impact on the structure of regional innovation in China.Due to the implementation of non-balanced,regional development strategy,such as implementing the Science and Technology System in the 1990s,those regions with comprehensive human capital,foreign investment,RD investment and economic development increase their innovation in the market-oriented system which leads to the accelerated trend of regional innovation in China.Other regional development strategies similar to this strategy include developing western regions,and revitalizing old industrial bases in northern regions. The human capital,foreign investment,R D investment and economic development of the regions with weak innovation haven't been enhanced.Therefore,in order to gradually narrow the gap of regional innovation among China regions,we have to emphasize on the promotion of regional human capital,foreign investment,R D investment and economic development.

Key concepts: Convergence (economics), Spatial econometrics, Openness to experience, China, Spatial analysis, Economic geography, Economics, Econometrics

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