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The Agglomeration of KIS, Spatial Spillover Effects and Innovation Capability of Manufacturing Firms: Evidence from 283 Cities in China |
ZHAO Ting,ZHAO Wei |
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Abstract Based on the existing observational surveys and case study literatures, this paper identifies two substantial empirical propositions which describe how the agglomeration of KIS influences the innovation of manufacturing firms with the norms of spatial economics’ paradigm. We designed an empirical model according to the characteristics of the two propositions and tested them with data of KIS and manufacturing firms in 283 Chinese cities during 2005-2007. The results show that the spatial concentration of two representative KIS sectors in urban areas not only contains a significant positive effect on the innovative efficiency of indigenous manufacturing enterprises in the same urban area, but also exerts spatial interactive effects in neighboring cities. In addition, tests based on different groups of manufacturing sectors reveal that the innovative effects that KIS on manufacturing firms varied across firms with different scale or technology intensity. In particular, SMEs are more sensitive to the spatial concentration of KIS in neighboring cities, compared with that in the same city. This is in contrary to the findings of empirical tests from the data of medium and large firms. Furthermore, indigenous firms in medium and high-tech sectors benefit much more from agglomeration of KIS than those in low- tech sectors.
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Received: 11 September 2013
Published: 15 January 2014
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Corresponding Authors:
ZHAO Wei
E-mail: zhaowei151@hotmail.com
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