Abstract
Market integration is an important tool for China’s regionally coordinated economic development. At the same time, China is implementing an innovation-driven development strategy. Therefore, the way the market integration affects regional innovation is of great significance to analyze this problem. The panel data of 27 cities in the Yangtze River Delta region in China with the highest degree of economic integration from 2009 to 2018 are used to investigate the impact of market integration (MI) on regional innovation (RI). The main findings are as follows: the first-order lag term of RI is significantly positive, and RI has certain path dependence. In this regard, MI has a positive impact on RI and promotes RI. The estimated coefficient of MI is significantly positive and has a positive impact on RI and promotes RI. This provides a reference for promoting RI through MI. The contributions of the paper are threefold: (1) This paper examines the impact of MI on RI to provide policy implications for the coordinated development of innovation between regions. (2) The relative price method is adopted to measure the MI, which covers 16 kinds of commodities, covering a wider range than does the traditional method. (3) This paper uses the generalized method of moments (GMM) to test the effect of MI on RI for the first time.
Highlights
Innovation is crucial for economic development. erefore, all countries spare no effort in innovation, and China is no exception. e Chinese government places great importance on innovation by widely implementing its innovation-driven development strategy to continuously enhance economic innovation and competitiveness
To verify the robustness of the parameter estimation results, we introduced variables one by one to conduct regression analysis on the model. e results are shown in Models 1–7 in Table 5. e pooled ordinary least squares (OLS) and the panel fixation effect both show that the coefficient of urban integration is significantly positive, indicating that market integration (MI) is conducive to regional innovation (RI)
MI has a positive impact on RI and promoting MI can be another driving force of RI
Summary
Innovation is crucial for economic development. erefore, all countries spare no effort in innovation, and China is no exception. e Chinese government places great importance on innovation by widely implementing its innovation-driven development strategy to continuously enhance economic innovation and competitiveness. E Chinese government places great importance on innovation by widely implementing its innovation-driven development strategy to continuously enhance economic innovation and competitiveness. As the report of the Nineteenth National Congress pointed out, “Accelerate the construction of an innovative country. Innovation is the first driving force for development.” e 2020 government work report states “Improve the support capacity of scientific and technological innovation. China is strongly promoting the coordinated development of Beijing-Tianjin-Hebei and the integrated development of the Yangtze River Delta (YRD). E 2021 government work report pointed out that China should optimize its regional economic layout and promote regional coordinated development, especially regarding the integrated development of the Yangtze River Delta. E report proposed a vigorous promotion of scientific and technological innovation and adherence to innovation-driven development. China is strongly promoting the coordinated development of Beijing-Tianjin-Hebei and the integrated development of the Yangtze River Delta (YRD). e outline of the MI development plan for the YRD in December 2019 pointed out that regional development linkages should be strengthened, and cross-border regional construction and sharing should be promoted. e 2021 government work report pointed out that China should optimize its regional economic layout and promote regional coordinated development, especially regarding the integrated development of the Yangtze River Delta. e report proposed a vigorous promotion of scientific and technological innovation and adherence to innovation-driven development. erefore, what is the impact of MI on RI? In the context of China’s promotion of MI and improvement of technological innovation capabilities, studying this issue has important practical significance for China to build an innovative country
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