DIVERSITY OR SPECIALIZARION? UNDERSTANDING KNOWLEDGE SPILLOVER MECHANISMS IN CHINA

Shicong XU

PhD candidate, Department of Agricultural, Environmental and Development Economics, Suite 250 Ag. Administration Building, 2120 Fyffe Rd, The Ohio State University, Columbus OH 43210, USA

Shicong.x@gmail.com

Abdoul G. SAM

Professor, Department of Agricultural, Environmental and Development Economics, Suite 250 Ag. Administration Building, 2120 Fyffe Rd,  The Ohio State University, Columbus OH 43210, USA, Corresponding author

Sam.7@osu.edu

Abstract

China’s rise to the top echelons of the world’s economies was accompanied by an expeditious growth in domestic patent applications. Not surprisingly, this phenomenon has spawned a growing literature trying to sort out the determinants of patented research in China. However, mostly due to data limitations, many of the papers on this topic use aggregated innovation data at the industry, prefecture, or province levels. In this paper, we examine the empirical validity of important theories of knowledge spillover in the context of China at a micro-level, using a firm-level panel dataset comprised of publicly traded companies listed in the Shanghai and ShenZhen Stock Exchanges during the 2006-2010 period. Our study sheds light on whether locating near innovative firms increases patenting activity in general, regardless of the industry membership of these neighboring firms. We also explore how industry makeup, measured by the number of firms in the same or different industries, affects firm-level patenting activity. Our econometric results show that the number of patent applications by firms in close geographic proximity of a firm of interest has a significant and positive impact on that firm’s successful patent applications. In addition, we find that proximity to firms in the same industry reduces innovation while locating near firms from different industries stimulates innovation.

Keywords: patents, knowledge diffusion, MAR spillover, Jacobs spillover, China

JEL classification: O31, O32, O33, R12, D22

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URBANIZING PEASANT WORKERS IN CHINA

Yuheng LI

Institute of Geographic Sciences and Natural Resources Research, Chinese Academy of Sciences.

Yurui LI

Institute of Geographic Sciences and Natural Resources Research, Chinese Academy of Sciences

Yansui LIU

College of Resources Science and Technology, Beijing Normal University, Beijing, China; Institute of Geographic Sciences and Natural Resources Research,  Chinese Academy of Sciences, 11A Datun Road, Chaoyang District Beijing 100101, China
liuys@igsnrr.ac.cn
(corresponding author)

Abstract

The paper aims to comment on China’s ambition to urbanize 300 million peasant workers as a main task in realizing its urban dream. It investigates the severe peasant-workers related problems and points out that local government’s financial capacity, peasant workers’ vocational skills, social inclusion and degrading countryside are challenging the sustainable urban and rural development in China and need properly treated. The paper proposes possible ways for policy implications and highlights the importance of coherently promoting both classified urbanization and ruralization in China in the future.

Keywords: Urbanization, peasant workers, ruralization, China

JEL classification: R11, R12
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