Macroeconomic uncertainty and the spatiotemporal evolution of innovation networks: evidence from China's urban technology supply chain

Abstract

PurposeBased on the perspective of technology supply chain, this study explores the effect of macroeconomic uncertainty regarding the spatiotemporal evolution of urban innovation networks to establish causality.Design/methodology/approachIt collects patent trading data for 283 cities in China (2005–2017) and employs the spatial econometric model to investigate the causal relationship.FindingsThe regional transfer of advanced technology in China is rising sharply, and the innovation network based on patent trading is typically high-density, multi-direction and wide-spreading. Further, macroeconomic uncertainty has a negative effect on the scale of innovation flows and the absorptive capacity in eastern cities. However, it has no significant impact on the innovation network characteristics in developed cities. In contrast, macroeconomic uncertainty is detrimental for the absorptive capacity and node importance in inland and undeveloped cities.Practical implicationsAs macroeconomic uncertainty increases, it is important to improve the quality of the urban innovation network with a better understanding of heterogeneity to promote further suitability innovation at the region-level.Originality/valueThis study highlights a clear and distinctive view that macroeconomic uncertainty not only directly affects the evolution of the urban innovation network but also indirectly affects the characteristics of other city nodes via the spatial spillover mechanism.