China’s high-quality innovation development from an institutional perspective: regional differences and convergence
Abstract
High-quality innovation is an inevitable requirement for high-quality economic development, and an accurate grasp of the regional distribution characteristics of the level of highquality innovation development (HQID) can better understand and simulate high-quality innovation. This paper constructs a dataset of high-value inventions based on the Chinese patent database using textual analysis methods and the criteria for High-Quality Inventions proposed by the State Intellectual Property Office, and explores inter-provincial variability and convergence by using the Theil index, s convergence, and b convergence. This paper finds that High-Quality Inventions are significantly and positively correlated with various indicators measuring the quality and value of patents. In general, the overall level of HQID is on an upward trend with clear differences among provinces, which shows a regional unbalanced but overall rapid development. From the regional differences of HQID, the regional differences of HQID have been narrowed, mainly within the region. In terms of the convergence of HQID, s convergence, absolute b convergence, conditional b convergence, and club convergence exist nationally and within each region, which indicates that the gap between the national and regional levels of HQID has been narrowing over time. HQID has a positive promotion effect on the relationship between HQID and economic growth, economic growth rate, and total factor productivity. High-quality innovation can improve the quality of input factors, cultivate new dynamic energy for economic development, and then promote high-quality economic development. In the context of the shift of IP work from pursuing quantity to improving quality, the scientific understanding of high-quality innovation, the development status, and the differences of regional innovation high-quality development is of great significance for improving innovation quality and efficiency, and effectively supporting high-quality economic development.
First published online 14 November 2023
Keyword : high-quality innovation development, High-Quality Inventions, Theil index, σ convergence, β convergence, club convergence, PVAR model
How to Cite
Cheng, K., Chen, H., Zhang, F., & Zhang, M. (2023). China’s high-quality innovation development from an institutional perspective: regional differences and convergence. Technological and Economic Development of Economy, 29(6), 1657–1686. https://doi.org/10.3846/tede.2023.20214
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Boeing, P., & Mueller, E. (2019). Measuring China’s patent quality: Development and validation of ISR indices. China Economic Review, 57, Article 101331. https://doi.org/10.1016/j.chieco.2019.101331
Chen, K., & Guan, J. (2012). Measuring the efficiency of China’s regional innovation systems: Application of network Data Envelopment Analysis (DEA). Regional Studies, 46(3), 355–377. https://doi.org/10.1080/00343404.2010.497479
Dang, J., & Motohashi, K. (2015). Patent statistics: A good indicator for innovation in China? Patent subsidy program impacts on patent quality. China Economic Review, 35, 137–155. https://doi.org/10.1016/j.chieco.2015.03.012
Figueroa, N., & Serrano, C. J. (2019). Patent trading flows of small and large firms. Research Policy, 48(7), 1601–1616. https://doi.org/10.1016/j.respol.2019.03.002
Fu, X., & Mu, R. (2014). Enhancing China’s innovation performance: The policy choices. China & World Economy, 22(2), 42–60. https://doi.org/10.1111/j.1749-124X.2014.12061.x
Galasso, A., Schankerman, M., & Serrano, C. J. (2013). Trading and enforcing patent rights. The RAND Journal of Economics, 44(2), 275–312. https://doi.org/10.1111/1756-2171.12020
Ghazinoory, S., Riahi, P., Azar, A., & Miremadi, T. (2014). Measuring innovation performance of developing regions: Learning and catch-up in provinces of Iran. Technological and Economic Development of Economy, 20(3), 507–533. https://doi.org/10.3846/20294913.2014.881433
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Grossman, G. M., & Helpman, E. (1991). Trade, knowledge spillovers, and growth. European Economic Review, 35(2), 517–526. https://doi.org/10.1016/0014-2921(91)90153-A
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Hall, B. H., & Harhoff, D. (2012). Recent research on the economics of patents. Annual Review of Economics, 4(1), 541–565. https://doi.org/10.1146/annurev-economics-080511-111008
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Harhoff, D. (2016). Patent quality and examination in Europe. American Economic Review, 106(5), 193–197. https://doi.org/10.1257/aer.p20161093
Harhoff, D., Scherer, F. M., & Vopel, K. (2003). Citations, family size, opposition and the value of patent rights. Research Policy, 32(8), 1343–1363. https://doi.org/10.1016/S0048-7333(02)00124-5
Higham, K., de Rassenfosse, G., & Jaffe, A. B. (2021). Patent quality: Towards a systematic framework for analysis and measurement. Research Policy, 50(4), Article 104215. https://doi.org/10.1016/j.respol.2021.104215
Hong, J., Zhu, R., Hou, B., & Wang, H. (2019). Academia-industry collaboration and regional innovation convergence in China. Knowledge Management Research & Practice, 17(4), 396–407. https://doi.org/10.1080/14778238.2019.1589394
Hu, A. G., & Jefferson, G. H. (2009). A great wall of patents: What is behind China’s recent patent explosion? Journal of Development Economics, 90(1), 57–68. https://doi.org/10.1016/j.jdeveco.2008.11.004
Huang, J., Li, W., Huang, X., Wang, Y., & Guo, L. (2020). Technology and innovation in China: A patent citation-based analysis. Science, Technology and Society, 26(2), 344–365. https://doi.org/10.1177/0971721820932020
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Jin, P., Peng, C., & Song, M. (2019). Macroeconomic uncertainty, high-level innovation, and urban green development performance in China. China Economic Review, 55, 1–18. https://doi.org/10.1016/j.chieco.2019.02.008
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Lanjouw, J. O., & Schankerman, M. (2004). Patent quality and research productivity: Measuring innovation with multiple indicators. The Economic Journal, 114(495), 441–465. https://doi.org/10.1111/j.1468-0297.2004.00216.x
Lerner, J., Sorensen, M., & Strömberg, P. E. R. (2011). Private equity and long-run investment: The case of innovation. The Journal of Finance, 66(2), 445–477. https://doi.org/10.1111/j.1540-6261.2010.01639.x
Li, J., Sutherland, D., Ning, L., & Wang, Y. (2014). Firm ownership, industrial structure, and regional innovation performance in China’s provinces. Technology Analysis & Strategic Management, 26(9), 1001–1022. https://doi.org/10.1080/09537325.2014.943714
Li, X. (2009). China’s regional innovation capacity in transition: An empirical approach. Research Policy, 38(2), 338–357. https://doi.org/10.1016/j.respol.2008.12.002
Long, C. X., & Wang, J. (2018). China’s patent promotion policies and its quality implications. Science and Public Policy, 46(1), 91–104. https://doi.org/10.1093/scipol/scy040
Lv, C., Bian, B., Lee, C.-C., & He, Z. (2021). Regional gap and the trend of green finance development in China. Energy Economics, 102, Article 105476. https://doi.org/10.1016/j.eneco.2021.105476
Mankiw, N. G., Romer, D., & Weil, D. N. (1992). A contribution to the empirics of economic growth. The Quarterly Journal of Economics, 107(2), 407–437. https://doi.org/10.2307/2118477
Mann, R. J., & Underweiser, M. (2012). A new look at patent quality: Relating Patent prosecution to validity. Journal of Empirical Legal Studies, 9(1), 1–32. https://doi.org/10.1111/j.1740-1461.2011.01245.x
Mao, C. C., & Ma, Z. X. (2021). The analysis of the regional economic growth and the regional financial industry development difference in China is based on the theil index. International Journal of Economics and Finance Studies, 13(1), 128–154.
Marco, A. C., Sarnoff, J. D., & deGrazia, C. A. W. (2019). Patent claims and patent scope. Research Policy, 48(9), Article 103790. https://doi.org/10.1016/j.respol.2019.04.014
Moser, P. (2013). Patents and Innovation: Evidence from Economic History. Journal of Economic Perspectives, 27(1), 23–44. https://doi.org/10.1257/jep.27.1.23
Qin, S., & Xiong, Y. (2022). Innovation strategies of Chinese new energy vehicle enterprises under the influence of non-financial policies: Effects, mechanisms and implications. Energy Policy, 164, Article 112946. https://doi.org/10.1016/j.enpol.2022.112946
Shu, T., Tian, X., & Zhan, X. (2022). Patent quality, firm value, and investor underreaction: Evidence from patent examiner busyness. Journal of Financial Economics, 143(3), 1043–1069. https://doi.org/10.1016/j.jfineco.2021.10.013
Squicciarini, M., Dernis, H., & Criscuolo, C. (2013). Measuring patent quality: Indicators of technological and economic value (OECD Science, Technology and Industry Working Papers No. 2013/03). OECD Publishing, Paris. https://doi.org/10.1787/5k4522wkw1r8-en
Tian, G. (2019). Deceleration of China’s economic growth: Causes and countermeasures. Frontiers of Economics in China, 14(1), 3–25.
Trajtenberg, M., Shiff, G., & Melamed, R. (2009). The “Names Game”: Harnessing Inventors, patent data for economic research. Annals of Economics and Statistics, (93/94), 79–108. https://doi.org/10.2307/27917384
Wang, S., Fan, J., Zhao, D., & Wang, S. (2016). Regional innovation environment and innovation efficiency: The Chinese case. Technology Analysis & Strategic Management, 28(4), 396–410. https://doi.org/10.1080/09537325.2015.1095291
Wei, S.-J., Xie, Z., & Zhang, X. (2017). From “Made in China” to “Innovated in China”: Necessity, prospect, and challenges. Journal of Economic Perspectives, 31(1), 49–70. https://doi.org/10.1257/jep.31.1.49
Xu, A., Qiu, K., Jin, C., Cheng, C., & Zhu, Y. (2022). Regional innovation ability and its inequality: Measurements and dynamic decomposition. Technological Forecasting and Social Change, 180, Article 121713. https://doi.org/10.1016/j.techfore.2022.121713
Yang, X., Zhang, H., Lin, S., Zhang, J., & Zeng, J. (2021). Does high-speed railway promote regional innovation growth or innovation convergence? Technology in Society, 64, Article 101472. https://doi.org/10.1016/j.techsoc.2020.101472
Ying, L., Li, M., & Yang, J. (2021). Agglomeration and driving factors of regional innovation space based on intelligent manufacturing and green economy. Environmental Technology & Innovation, 22, Article 101398. https://doi.org/10.1016/j.eti.2021.101398
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