The impact of innovation on intra-city economic disparity: a technological complexity perspective

As innovation progresses, the overall complexity of technological inventions also grows, impacting the spatial effects of innovation. This study, utilizing data from 281 Chinese cities from 2005 to 2020 and employing panel threshold regression, re-evaluates the impact of innovation on regional disparities from the perspective of technological complexity. Initially, the paper introduces a nonlinear iteration method to generate two metrics: innovation complexity for assessing regional innovation and technological complexity for assessing patent quality. Subsequently, the study incorporates technological complexity into the theoretical framework of spillover and siphoning effects, exploring its impact on intra-city economic disparity. The results reveal: (1) Overall, innovation in Chinese cities contributes to alleviating intra-city economic disparity. However, this effect is nonlinear, gradually diminishing as innovation increases. (2) The study empirically supports the statement innovation in high-complexity technologies plays a smaller role in reducing regional disparities than innovation in low-complexity technologies. (3) We also examine how geographic factors moderate the effects of innovation of varying complexities on economic disparity, finding that increasing geographic barriers can result in opposite moderating effects on high-complexity and low-complexity innovation. Our research implies that the ongoing evolution of innovation towards domains with higher technological complexity potentially threatens balanced regional development.

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Publication Details

Journal
Applied Economics
Published
2024-09-23
DOI
https://doi.org/10.1080/00036846.2024.2403781
Citations
9
Primary Topic
Economic and Technological Innovation
Type
article
Field-Weighted Citation Impact
10.16
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article

The impact of innovation on intra-city economic disparity: a technological complexity perspective

Enni Xu, Fan Fei
9 citations
Applied Economics
Economic and Technological Innovation
10.16
article

The impact of innovation on intra-city economic disparity: a technological complexity perspective

Enni Xu, Fan Fei
article en
9 citations

Abstract

As innovation progresses, the overall complexity of technological inventions also grows, impacting the spatial effects of innovation. This study, utilizing data from 281 Chinese cities from 2005 to 2020 and employing panel threshold regression, re-evaluates the impact of innovation on regional disparities from the perspective of technological complexity. Initially, the paper introduces a nonlinear iteration method to generate two metrics: innovation complexity for assessing regional innovation and technological complexity for assessing patent quality. Subsequently, the study incorporates technological complexity into the theoretical framework of spillover and siphoning effects, exploring its impact on intra-city economic disparity. The results reveal: (1) Overall, innovation in Chinese cities contributes to alleviating intra-city economic disparity. However, this effect is nonlinear, gradually diminishing as innovation increases. (2) The study empirically supports the statement innovation in high-complexity technologies plays a smaller role in reducing regional disparities than innovation in low-complexity technologies. (3) We also examine how geographic factors moderate the effects of innovation of varying complexities on economic disparity, finding that increasing geographic barriers can result in opposite moderating effects on high-complexity and low-complexity innovation. Our research implies that the ongoing evolution of innovation towards domains with higher technological complexity potentially threatens balanced regional development.

Applied EconomicsVol. 57(52)
The University of Queensland (AU), The University of Western Australia (AU), Wuhan University (CN)
Sustainable cities and communities
Openalex Percentile: Top 2%
Economic and Technological Innovation
10.16
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