Foreign Direct Investment Spillovers and the Geography of Innovation in Chinese Regions: The Role of Regional Industrial Specialization and Diversity

REFERENCES

• Acs Z. J., Anselin L. and Varga A. (2002) Patents and innovation counts as measures of regional production of new knowledge, Research Policy 31, 1069–1085.
   Web of Science ®Google Scholar
• Aitken B. J. and Harrison A. E. (1999) Do domestic firms benefit from direct foreign investment? Evidence from Venezuela, American Economic Review 89, 605–618.
   Web of Science ®Google Scholar
• Anselin L. (1988) Spatial Econometrics: Methods and Models. Kluwer, Dordrecht.
   Google Scholar
• Anselin L. and Florax R. G. M. (1995) Small sample properties of tests for spatial dependence in regression models: some further results, in Anselin L. and Florax R. G. M. (Eds) New Directions in Spatial Econometrics, pp. 21–74. Springer, Berlin.
   Google Scholar
• Anselin L., Varga A. and Acs Z. (1997) Local geographic spillovers between university research and high technology innovations, Journal of Urban Economics 42, 422–448. doi:10.1006/juec.1997.2032
   Web of Science ®Google Scholar
• Arrow K. (1962) The economic implications of learning by doing, Review of Economic Studies 29, 155–172.
   Google Scholar
• Asheim B. T., Boschma R. and Cooke P. (2011) Constructing regional advantage: platform policies based on related variety and differentiated knowledge bases, Regional Studies 45, 893–904. doi:10.1080/00343404.2010.543126
   Web of Science ®Google Scholar
• Audretsch D. B. and Feldman M. P. (1996) R&D spillovers and the geography of innovation and production, American Economic Review 86, 630–640.
   Web of Science ®Google Scholar
• Bajo-Rubio O., Díaz-Mora C. and Díaz-Roldán C. (2010) Foreign direct investment and regional growth: an analysis of the Spanish case, Regional Studies 44, 373–382. doi:10.1080/00343400802508844
   Web of Science ®Google Scholar
• Baptista R. and Swann P. (1998) Do firms in clusters innovate more?, Research Policy 27, 525–540. doi:10.1016/S0048-7333(98)00065-1
   Web of Science ®Google Scholar
• Barry F., Görg H. and McDowell A. (2003) Outward FDI and the investment development path of a late-industrializing economy: evidence from Ireland, Regional Studies 37, 341–349. doi:10.1080/0034340032000074389
   Web of Science ®Google Scholar
• Beaudry C. and Schiffauerova A. (2009) Who's right, Marshall or Jacobs? The localization versus urbanization debate, Research Policy 38, 318–337.
   Web of Science ®Google Scholar
• Belsley D. A., Kuzh E. and Welsch R. E. (1980) Regression Diagnostics: Identifying Influential Data and Sources of Collinearity. Wiley, Chichester.
   Google Scholar
• Blomström M. and Kokko A. (1998) Multinational corporations and spillovers, Journal of Economic Surveys 12, 247–277. doi:10.1111/1467-6419.00056
   Google Scholar
• Borensztein E., De Gregorio J. and Lee J.-W. (1998) How does foreign direct investment affect economic growth?, Journal of International Economics 45, 115–135. doi:10.1016/S0022-1996(97)00033-0
   Web of Science ®Google Scholar
• Buckley P. J., Clegg J. and Wang C. (2002) The impact of inward FDI on the performance of Chinese manufacturing firms, Journal of International Business Studies 33, 637–655. doi:10.1057/palgrave.jibs.8491037
   Web of Science ®Google Scholar
• Buckley P. J., Clegg J. and Wang C. (2007) Is the relationship between inward FDI and spillover effects linear? An empirical examination of the case of China, Journal of International Business Studies 38, 447–459. doi:10.1057/palgrave.jibs.8400274
   Web of Science ®Google Scholar
• Cabrer-Borrás B. and Serrano-Domingo G. (2007) Innovation and R&D spillover effects in Spanish regions: a spatial approach, Research Policy 36, 1357–1371. doi:10.1016/j.respol.2007.04.012
   Web of Science ®Google Scholar
• Carlino G., Chatterjee S. and Hunt R. M. (2007) Urban density and the rate of invention, Journal of Urban Economics 61, 389–419.
   Google Scholar
• Caves R. E. (1974) Multinational firms, competition, and productivity in host-country markets, Economica 41, 176–193.
   Web of Science ®Google Scholar
• Cheung K.-Y. and Lin P. (2004) Spillover effects of FDI on innovation in China: evidence from the provincial data, China Economic Review 15, 25–44. doi:10.1016/S1043-951X(03)00027-0
   Web of Science ®Google Scholar
• Cooke P., Gomez Uranga M. and Etxebarria G. (1997) Regional innovation systems: institutional and organisational dimensions, Research Policy 26, 475–491.
   Google Scholar
• Crespo N. and Fontoura M. P. (2007) Determinant factors of FDI spillovers – what do we really know?, World Development 35, 410–425.
   Web of Science ®Google Scholar
• Driessen P. H. (2005) Green new product development: the pivotal role of product greenness, IEEE Transactions on Engineering Management 60, 315–326. doi:10.1109/TEM.2013.2246792
   Web of Science ®Google Scholar
• Driffield N. (2004) Regional policy and spillovers from FDI in the UK, Annals of Regional Science 38, 579–594. doi:10.1007/s00168-003-0174-5
   Web of Science ®Google Scholar
• Driffield N. and Love J. H. (2007) Linking FDI motivation and host economy productivity effects: conceptual and empirical analysis, Journal of International Business Studies 38, 460–473. doi:10.1057/palgrave.jibs.8400268
   Web of Science ®Google Scholar
• Edler J., Fier H. and Grimpe C. (2011) International scientist mobility and the locus of knowledge and technology transfer, Research Policy 40, 791–805. doi:10.1016/j.respol.2011.03.003
   Web of Science ®Google Scholar
• Elhorst J. P. (2003) Specification and estimation of spatial panel data models, International Regional Science Review 26, 244–268. doi:10.1177/0160017603253791
   Web of Science ®Google Scholar
• Elhorst J. P. (2009) Spatial panel models, in Fischer M. M. and Geetis A. (Eds) Handbook of Applied Spatial Analysis, pp. 377–407. Springer, Berlin.
   Google Scholar
• Elhorst J. P. (2010) Applied spatial econometrics: raising the bar, Spatial Economic Analysis 5, 9–28. doi:10.1080/17421770903541772
   Web of Science ®Google Scholar
• Feldman M. P. and Audretsch D. B. (1999) Innovation in cities: science-based diversity, specialization and localized competition, European Economic Review 43, 409–429. doi:10.1016/S0014-2921(98)00047-6
   Web of Science ®Google Scholar
• Fosfuri A., Motta M. and Rønde T. (2001) Foreign direct investment and spillovers through workers’ mobility, Journal of International Economics 53, 205–222. doi:10.1016/S0022-1996(00)00069-6
   Web of Science ®Google Scholar
• Fu X. (2008) Foreign direct investment, absorptive capacity and regional innovation capabilities: evidence from China, Oxford Development Studies 36, 89–110.
   Google Scholar
• Fu X. and Gong Y. (2011) Indigenous and foreign innovation efforts and drivers of technological upgrading: evidence from China, World Development 39, 1213–1225. doi:10.1016/j.worlddev.2010.05.010
   Web of Science ®Google Scholar
• Fu X., Pietrobelli C. and Soete L. (2011) The role of foreign technology and indigenous innovation in the emerging economies: technological change and catching-up, World Development 39, 1204–1212. doi:10.1016/j.worlddev.2010.05.009
   Web of Science ®Google Scholar
• Gao T. (2004) Regional industrial growth: evidence from Chinese industries, Regional Science and Urban Economics 34, 101–124. doi:10.1016/S0166-0462(03)00023-1
   Web of Science ®Google Scholar
• Girma S., Greenaway D. and Wakelin K. (2001) Who benefits from foreign direct investment in the UK?, Scottish Journal of Political Economy 48, 119–133. doi:10.1111/1467-9485.00189
   Web of Science ®Google Scholar
• Girma S. and Wakelin K. (2002) Are there regional spillovers from FDI in the UK?, in Greenaway D., Upward R. and Wakelin K. (Eds) Trade, Investment, Migration and Labour Markets, pp. 172–186. Macmillan, Basingstoke.
   Google Scholar
• Girma S. and Wakelin K. (2007) Local productivity spillovers from foreign direct investment in the UK electronics industry, Regional Science and Urban Economics 37, 399–412. doi:10.1016/j.regsciurbeco.2006.11.006
   Web of Science ®Google Scholar
• Glaeser E. L., Kallal H. D., Scheinkman J. A. and Shleifer A. (1992) Growth in cities, Journal of Political Economy 100, 1126–1152.
   Web of Science ®Google Scholar
• Gonçalves E. and Almeida E. (2009) Innovation and spatial knowledge spillovers: evidence from Brazilian patent data, Regional Studies 43, 513–528. doi:10.1080/00343400701874131
   Web of Science ®Google Scholar
• Görg H. and Greenaway D. (2004) Much ado about nothing? Do domestic firms really benefit from foreign direct investment?, World Bank Research Observer 19, 171–197. doi:10.1093/wbro/lkh019
   Web of Science ®Google Scholar
• Greunz L. (2004) Industrial structure and innovation – evidence from European regions, Journal of Evolutionary Economics 14, 563–592.
   Google Scholar
• Griliches Z. (1990) Patent statistics as economic indicators: a survey, Journal of Economic Literature 28, 1661–1707.
   Web of Science ®Google Scholar
• Guadalupe M., Kuzmina O. and Thomas C. (2012) Innovation and foreign ownership, American Economic Review 102, 3594–3627. doi:10.1257/aer.102.7.3594
   Web of Science ®Google Scholar
• Harrison B., Kelley M. R. and Gant J. (1996) Innovative firm behavior and local milieu: exploring the intersection of agglomeration, firm effects, and technological change, Economic Geography 72, 233–258.
   Web of Science ®Google Scholar
• Henderson V. (1997) Externalities and industrial development, Journal of Urban Economics 42, 449–470. doi:10.1006/juec.1997.2036
   Web of Science ®Google Scholar
• Hu A. G., Jefferson G. H. and Jinchang Q. (2005) R&D and technology transfer: firm-level evidence from Chinese industry, Review of Economics and Statistics 87, 780–786. doi:10.1162/003465305775098143
   Web of Science ®Google Scholar
• Huang L., Liu X. and Xu L. (2012) Regional innovation and spillover effects of foreign direct investment in China: a threshold approach, Regional Studies 46, 583–596. doi:10.1080/00343404.2010.520694
   Web of Science ®Google Scholar
• Jacobs J. (1969) The Economy of Cities. Random House, New York, NY.
   Google Scholar
• Jaffe A. B. (1989) Real effects of academic research, American Economic Review 79, 957–970.
   Web of Science ®Google Scholar
• Jaffe A. B., Trajtenberg M. and Henderson R. (1993) Geographic localization of knowledge spillovers as evidenced by patent citations, Quarterly Journal of Economics 108, 577–598. doi:10.2307/2118401
   Web of Science ®Google Scholar
• Javorcik B. S. (2004) Does foreign direct investment increase the productivity of domestic firms? In search of spillovers through backward linkages, American Economic Review 94, 605–627.
   Web of Science ®Google Scholar
• Kathuria V. (2000) Productivity spillovers from technology transfer to Indian manufacturing firms, Journal of International Development 12, 343–369. doi:10.1002/(SICI)1099-1328(200004)12:3<343::AID-JID639>3.0.CO;2-R
   Google Scholar
• Krugman P. (1991) Increasing returns and economic geography, Journal of Political Economy 99, 483–499.
   Web of Science ®Google Scholar
• Kuo C.-C. and Yang C.-H. (2008) Knowledge capital and spillover on regional economic growth: evidence from China, China Economic Review 19, 594–604. doi:10.1016/j.chieco.2008.06.004
   Web of Science ®Google Scholar
• Leahy D. and Neary J. P. (2007) Absorptive capacity, R&D spillovers, and public policy, International Journal of Industrial Organization 25, 1089–1108. doi:10.1016/j.ijindorg.2007.04.002
   Web of Science ®Google Scholar
• Li X. (2009) China's regional innovation capacity in transition: an empirical approach, Research Policy 38, 338–357. doi:10.1016/j.respol.2008.12.002
   Web of Science ®Google Scholar
• Li X. (2011) Sources of external technology, absorptive capacity, and innovation capability in Chinese state-owned high-tech enterprises, World Development 39, 1240–1248.
   Web of Science ®Google Scholar
• Liu X. and Buck T. (2007) Innovation performance and channels for international technology spillovers: Eevidence from Chinese high-tech industries, Research Policy 36, 355–366. doi:10.1016/j.respol.2006.12.003
   Web of Science ®Google Scholar
• Liu X. and Wang C. (2003) Does foreign direct investment facilitate technological progress?: Eevidence from Chinese industries, Research Policy 32, 945–953. doi:10.1016/S0048-7333(02)00094-X
   Web of Science ®Google Scholar
• Liu X., Wang C. and Wei Y. (2009) Do local manufacturing firms benefit from transactional linkages with multinational enterprises in China?, Journal of International Business Studies 40, 1113–1130. doi:10.1057/jibs.2008.97
   Web of Science ®Google Scholar
• Liu X. and White R. S. (1997) The relative contributions of foreign technology and domestic inputs to innovation in Chinese manufacturing industries, Technovation 17, 119–125. doi:10.1016/S0166-4972(96)00090-9
   Web of Science ®Google Scholar
• Liu X. and Zou H. (2008) The impact of greenfield FDI and mergers and acquisitions on innovation in Chinese high-tech industries, Journal of World Business 43, 352–364. doi:10.1016/j.jwb.2007.11.004
   Web of Science ®Google Scholar
• Liu Z. (2008) Foreign direct investment and technology spillovers: theory and evidence, Journal of Development Economics 85, 176–193. doi:10.1016/j.jdeveco.2006.07.001
   Web of Science ®Google Scholar
• Lobo J. and Strumsky D. (2008) Metropolitan patenting, inventor agglomeration and social networks: a tale of two effects, Journal of Urban Economics 63, 871–884.
   Web of Science ®Google Scholar
• Mankiw N. G., Romer D. and Weil D. N. (1992) A contribution to the empirics of economic growth, Quarterly Journal of Economics 107, 407–437. doi:10.2307/2118477
   Web of Science ®Google Scholar
• Marin A. and Bell M. (2006) Technology spillovers from foreign direct investment (FDI): the active role of MNC subsidiaries in Argentina in the 1990s, Journal of Development Studies 42, 678–697. doi:10.1080/00220380600682298
   Web of Science ®Google Scholar
• Marshall A. (1890) Principles of Economics. Macmillan, London.
   Google Scholar
• Moreno R., Paci R. and Usai S. (2005) Spatial spillovers and innovation activity in European regions, Environment and Planning A 37, 1793. doi:10.1068/a37341
   Web of Science ®Google Scholar
• Mukkala K. (2004) Agglomeration economies in the Finnish manufacturing sector, Applied Economics 36, 2419–2427. doi:10.1080/0003684042000287655
   Web of Science ®Google Scholar
• National Bureau of Statistics (NBS) (2000–2009) China Statistical Yearbook. China Statistical Press, Beijing.
   Google Scholar
• National Bureau of Statistics (NBS) (1999–2009) China Industry Economy Statistical Yearbook. China Statistical Press, Beijing.
   Google Scholar
• National Bureau of Statistics (NBS) (2009) Database of China Main S&T Index (DCMSTI) (availiable at: http://www.sts.org.cn/kjnew/maintitle/mainframe.asp) (acessed on 1 May 2013).
   Google Scholar
• National Bureau of Statistics (NBS) (2012) Statistical Yearbook of China. China Statistical Press, Beijing.
   Google Scholar
• Ning L. (2007) Economic liberalisation for high-tech industry development? Lessons from China's response in developing the ICT manufacturing sector compared with the strategies of Korea and Taiwan, Journal of Development Studies 43, 562–587. doi:10.1080/00220380701204547
   Web of Science ®Google Scholar
• Ning L. (2009a) China's Rise in the World ICT Industry: Industrial Strategies and the Catch-up Development Model. Routledge, London.
   Google Scholar
• Ning L. (2009b) China's leadership in the world ICT industry: a successful story of its ‘attracting-in’ and ‘walking-out’ strategy for the development of high-tech industries?, Pacific Affairs 82, 67–91.
   Web of Science ®Google Scholar
• Ó Huallacháin B. and Lee D.-S. (2011) Technological specialization and variety in urban invention, Regional Studies 45, 67–88.
   Web of Science ®Google Scholar
• Ouyang P. and Fu S. (2012) Economic growth, local industrial development and inter-regional spillovers from foreign direct investment: evidence from China, China Economic Review 23, 445–460.
   Web of Science ®Google Scholar
• Paci R. and Usai S. (1999) Externalities, knowledge spillovers and the spatial distribution of innovation, GeoJournal 49, 381–390.
   Google Scholar
• Rodríguez-Pose A. and Crescenzi R. (2008) Research and development, spillovers, innovation systems, and the genesis of regional growth in Europe, Regional Studies 42, 51–67.
   Web of Science ®Google Scholar
• Romer P. M. (1986) Increasing returns and long-run growth, Journal of Political Economy 99, 1002–1037.
   Web of Science ®Google Scholar
• Sasidharan S. and Kathuria V. (2011) Foreign direct investment and R&D: substitutes or complements – a case of Indian manufacturing after 1991 reforms, World Development 39, 1226–1239. doi:10.1016/j.worlddev.2010.05.012
   Web of Science ®Google Scholar
• Saxenian A. (1994) Regional Advantage: Culture and Competition in Silicon Valley and Route 128. Harvard University Press, Cambridge, MA.
   Google Scholar
• Saxenian A. and Hsu J. Y. (2001) The Silicon Valley–Hsinchu connection: technical communities and industrial upgrading, Industrial and Corporate Change 10, 893–920. doi:10.1093/icc/10.4.893
   Google Scholar
• Schumpeter J. A. (1942) Capitalism, Socialism and Democracy. Harper & Row, New York, NY.
   Google Scholar
• Storper M. and Venables A. J. (2004) Buzz: face-to-face contact and the urban economy, Journal of economic geography 4, 351–370. doi:10.1093/jnlecg/lbh027
   Web of Science ®Google Scholar
• Sun Y. and Du D. (2010) Determinants of industrial innovation in China: evidence from its recent economic census, Technovation 30, 540–550. doi:10.1016/j.technovation.2010.05.003
   Web of Science ®Google Scholar
• Sun Y. and Liu F. (2010) A regional perspective on the structural transformation of China's national innovation system since 1999, Technological Forecasting and Social Change 77, 1311–1321. doi:10.1016/j.techfore.2010.04.012
   Web of Science ®Google Scholar
• Tian X. (2006) Accounting for sources of FDI technology spillovers: evidence from China, Journal of International Business Studies 38, 147–159. doi:10.1057/palgrave.jibs.8400245
   Web of Science ®Google Scholar
• Usai S. (2011) The geography of inventive activity in OECD regions, Regional Studies 45, 711–731. doi:10.1080/00343401003792492
   Web of Science ®Google Scholar
• Van der Panne G. (2004) Agglomeration externalities: Marshall versus Jacobs, Journal of Evolutionary Economics 14, 593–604. doi:10.1007/s00191-004-0232-x
   Web of Science ®Google Scholar
• Wang C., Deng Z., Kafouros M. I. and Chen Y. (2012) Reconceptualizing the spillover effects of foreign direct investment: Aa process-dependent approach, International Business Review 21, 452–464. doi:10.1016/j.ibusrev.2011.05.006
   Web of Science ®Google Scholar
• Wang E. C. (2010) Determinants of R&D investment: the extreme-bounds analysis approach applied to 26 OECD countries, Research Policy 39, 103–116. doi:10.1016/j.respol.2009.11.010
   Web of Science ®Google Scholar
• Wang Y. and Zhou Z. (2013) The dual role of local sites in assisting firms with developing technological capabilities: Eevidence from China, International Business Review 22, 63–76. doi:10.1016/j.ibusrev.2012.02.003
   Web of Science ®Google Scholar
• Xu X. and Sheng Y. (2012) Productivity spillovers from foreign direct investment: firm-level evidence from China, World Development 40, 62–74. doi:10.1016/j.worlddev.2011.05.006
   Web of Science ®Google Scholar
• Yeung H. W.-C., Liu W. and Dicken P. (2006) Transnational corporations and network effects of a local manufacturing cluster in mobile telecommunications equipment in China, World Development 34, 520–540. doi:10.1016/j.worlddev.2005.07.019
   Web of Science ®Google Scholar