ABSTRACT
This study develops a conceptual framework that draws from and builds upon research on regional innovation systems, by integrating insights from localized knowledge spillover and regional absorptive capacity, to explain the differential roles played by key drivers of innovative intensity across regions with different levels of development. We hypothesize that the positive effects of increasing concentration of scientists and engineers, technological specialization, R&D spending, government technology and funding support programs, and foreign direct investment on the intensity of innovative output production are more salient in developed (Eastern) than developing (Western) provincial regions in China. Using more than 865,000 patents awarded to Chinese assignees and other key innovation-related measures from 31 provincial-level regions between 1999 and 2008, our analysis of China’s innovative activities provided support for most of our predictions, except for government technology and funding support programs. We suggest policy implications for regional innovative capacity building in China’s transitional economy.
