Nonlinear spatial innovation spillovers and regional open innovation: evidence from China

Abstract

This paper examines the spatial innovation spillovers in different distance ranges in China. Results indicate that innovation spillovers do not decay with distance monotonously but appear to be a concave curve. Spatial innovation spillovers are superimposed effects, including both the positive effects of knowledge diffusion and the crowding‐out effects of innovation resources and market rivalry. We also confirm that the regional open innovation can positively regulate such spillovers. Regions with higher intensity of open innovation could gain more substantial benefits from innovation spillovers. These findings provide manifold policy implications for reducing the inequality of regional innovation capacity.