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Evolution of Regional Innovation with Spatial Knowledge Spillovers: Convergence or Divergence?

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Abstract

This paper extends endogenous economic growth models to incorporate knowledge externality. We explore whether spatial knowledge spillovers among regions exist, whether spatial knowledge spillovers promote regional innovative activities, and whether external knowledge spillovers affect the evolution of regional innovations in the long run. We empirically verify the theoretical results through applying spatial statistics and econometric models in the analysis of panel data of 31 regions in China. An accurate estimate of the range of knowledge spillovers is achieved and the convergence of regional knowledge growth rate is found, with clear evidences that developing regions benefit more from external knowledge spillovers than developed regions.

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Acknowledgements

We give special thanks to the journal editor and two anonymous reviewers who provided us with many constructive and helpful comments.

Funding

Wenjian Liu’s research was supported by CUNY Community College Research Grant No. 1541

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Authors and Affiliations

  1. Department of Statistics and Applied Probability, University of California, Santa Barbara, CA, USA

    Jinwen Qiu

  2. Department of Mathematics and Computer Science, Queensborough Community College, City University of New York, New York, NY, USA

    Wenjian Liu

  3. Department of Applied Mathematics, University of Washington, Seattle, WA, USA

    Ning Ning

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  1. Jinwen Qiu
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  2. Wenjian Liu
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  3. Ning Ning
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Correspondence to Ning Ning.

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Qiu, J., Liu, W. & Ning, N. Evolution of Regional Innovation with Spatial Knowledge Spillovers: Convergence or Divergence?. Netw Spat Econ 20, 179–208 (2020). https://doi.org/10.1007/s11067-019-09477-2

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  • DOI: https://doi.org/10.1007/s11067-019-09477-2

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