| By: |
Chen, Yang (Division of Economics, Xi'an Jiaotong-Liverpool University);
Luan, Fushu (Division of Economics, Xi'an Jiaotong-Liverpool University);
Regis, Paulo José (Division of Economics, Xi'an Jiaotong-Liverpool University) |
| Abstract: |
We contribute to explore the roles of sub-national leaders and institutional
environment in shaping urban innovation in China. We adopt a dynamic
production function framework using a panel dataset comprising 280 prefecture
cities during 2001-2014. We find that knowledge and education boost local
innovative outputs and has positive spillover effects; the externalities of
domestic and foreign capital are limited to local investments. Controlling for
the basic production inputs, our analysis unveils a clear and significant role
of meritocracy with regional dimension in sharpening the competitive advantage
of city innovativeness measured by patents applications. Party secretary
competition intensity and tenure encourages innovation while city mayor
turnover rate has a negative effect. Marketization intensity also positively
links with urban innovation. Compared with diversity and specialization,
competitive industrial structures bring more creative elements into regional
knowledge and idea production. |
| Keywords: |
Innovation, Meritocracy, Institutions, Prefecture-Level City, China |
| JEL: |
H11 R11 O30 P26 C33 |
| Date: |
2018–02–20 |
| URL: |
http://d.repec.org/n?u=RePEc:xjt:rieiwp:2018-03&r=cul |