Abstract
Language, as an instrument of human thinking and communication, plays a critical role in the process of knowledge formation and innovation cooperation. This paper investigates the impact of English proficiency on regional innovation in China. We find that English proficiency can improve the level of regional innovation, particularly for invention patents. Further channel tests show that English proficiency affects regional innovation by enhancing knowledge acquisition, knowledge creation, and knowledge absorption. Moreover, the policy shock of the 2016 college entrance exam mitigates the positive impact of English proficiency on regional innovation. English proficiency can also effectively enhance regional entrepreneurship.
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