Abstract
Since publishing its “National Mid- and Long-Term Science Technology Development Plan” in 2006, China has continued to publicly recognize the importance of innovation. The present study aims to both index and evaluate the progress of innovation within all the provinces of China, including provincial cities and autonomous regions (province hereafter). Innovation, as defined in this study, encompassed not only the development of previously unseen cutting-edge technology, but also the technical improvement or introduction of methods which lead to increased production and market expansion. This paper examines the distribution of innovation achieved in Chinese provinces utilizing the Aggregate Demand-Aggregate Supply model, and moreover, considers the intensive area of innovation occurrence. In existing literature, such innovation is recognized as the China Style Innovation; however, as the methodology of this study provides information relative to effective innovation, meaning the innovation with market expansion for objective area, it can be applied to nations other than China.
Highlights
The present study aims to both index and evaluate the progress of innovation within all the provinces of China, including provincial cities and autonomous regions
In existing literature, such innovation is recognized as the China Style Innovation; as the methodology of this study provides information relative to effective innovation, meaning the innovation with market expansion for objective area, it can be applied to nations other than China
Various studies on Chinese innovation seek to examine the relationships between innovation and economic growth, with patents, Research and Development investment (R & D as follows) or Total Factor Productivity (TFP as follows) used as proxy variables of innovation. [3] examines the interaction relationship among privatization of state-owned enterprises, intellectual property protection and innovation by using the Difference in Difference method, arguing that the privatization of state-owned enterprises significantly increases patent numbers, and the protection of intellectual property policy mitigates the advantages of private sectors. [4] estimates the dynamic panel data model with energy consumption and TFP, a proxy of innovation, confirming that innovation and energy consumption has a correlation in the short-term, yet it is unclear whether innovation leads to a long-term decrease in energy consumption
Summary
Research Division, Economic Research Institute for Northeast Asia, Niigata, Japan How to cite this paper: Minamikawa, T. (2019) A Study of the Distribution between Each Province about China Style Innovation. Theoretical Economics Letters, 9, 1316-1329. https://doi.org/10.4236/tel.2019.95085
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