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Coagglomeration of manufacturing and producer services: How does it affect regional innovation in China?

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Abstract

Although there are numerous studies on the role of industrial agglomeration on regional innovation, limited research has explored the impact of coagglomeration of manufacturing and producer services on regional innovation with spatial effects. Therefore, based on a unique panel data of 278 cities in China over the period 2003–2017, this paper employs the Spatial Durbin Model (SDM) with space-and-time fixed effect to investigate the direct and spatial effects of coagglomeration of manufacturing and producer services on regional innovation. The results reveal that there is an inverted U-shaped relationship between coagglomeration of manufacturing and producer services and regional innovation in local and neighboring cities, and the negative congestion effect has appeared. Furthermore, the direct and spatial effects of coagglomeration of manufacturing and sub-producer services on regional innovation are heterogeneous. Based on the findings, this paper provides important policy implications for local government in China.

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Acknowledgements

This research is supported by Philosophy and Social Science Foundation for Colleges and Universities in Jiangsu Province (2021SJA0109), Teachers Research Foundation Project of Nan**g University of Posts and Telecommunications (NYY221008) and National Natural Science Foundation of China (72101108). Thank the reviewers for their valuable suggestions.

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Authors and Affiliations

  1. High-Quality Development Evaluation Institute (Jiangsu Comprehensive Evaluation and Research Base for High Quality Development), Nan**g University of Posts and Telecommunications, Nan**g, China

    Nana Yang

  2. Business School, Nan**g University, Nan**g, China

    Nana Yang

  3. School of International Economics and Trade, Nan**g University of Finance and Economics, Nan**g, China

    **aoyong Yuan

  4. China Academy of Fiscal Sciences, Bei**g, China

    Fengqin Qin

  5. School of Management, University of Science and Technology of China, Hefei, China

    Furong Qian

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  1. Nana Yang
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Correspondence to **aoyong Yuan.

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Yang, N., Yuan, X., Qin, F. et al. Coagglomeration of manufacturing and producer services: How does it affect regional innovation in China?. Appl. Spatial Analysis 15, 1411–1432 (2022). https://doi.org/10.1007/s12061-022-09463-1

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