Abstract
This paper examines the threshold effect of resource misallocation between specialization and technological innovation performance in the high-tech industry in China. Contrary to the existing literature, this paper applies the static panel threshold model to evaluate the threshold effect of industrial specialization on the innovation performance, including the single threshold effect and double threshold effect. The empirical results shed new light on the topic and signified that high-tech industry specialization has a nonlinear effect on innovation performance and the resource misallocation threshold. This paper unveils a novel, double threshold effect of resource misallocation between industrial specialization and innovation performance. Moreover, the twenty-eight regions in China are divided into three types according to a resource misallocation, which unfold the current situation of the resource misallocation in pharmaceutical manufacturing—providing directional guidance for structural reforms of the supply side of pharmaceutical manufacturing in various regions.
Highlights
The third view is that there are certain conditions needed for industrial specialization to impact innovation
When too many resources are configured, we used the method of Ji Shuhan [14], and the capital and labor misallocation indices were processed in the absolute value. e larger the absolute value, the higher the misallocation. is paper used the arithmetic mean of absolute values of capital and labor misallocation indices to measure the overall resource misallocation index
By relying upon the panel data of twenty-eight province-level regions in China from 2009 to 2016, taking the pharmaceutical manufacturing industry as the research object and empirically analyzing the resource misallocation threshold effect of industrial specialization on innovation performance, we performed panel threshold analysis using STATA14.0 software in conjunction with the xthreg command developed by Wang Qunyong of Nankai University
Summary
The third view is that there are certain conditions needed for industrial specialization to impact innovation. Erefore, capital and labor are important factors for industrial specialization to promote technological innovation. E results show that factor market distortion inhibits technological progress and independent innovation in China [17, 18]. Dai and Liu established a theoretical model of the effect of factor market distortion on innovation efficiency. They used the provincial panel data of China’s high-tech industry from 1997 to 2009 to carry out empirical tests. E results demonstrate that factor market distortion significantly inhibits the improvement of innovation performance and innovation efficiency in high-tech industries [19, 20]. Bai and Zhai empirically studied the impact of capital and labor market distortions on innovation efficiency. Ji et al explored the resource misallocation effect of industrial specialization and believed that the improvement effect of industrial specialization was mainly achieved by reducing the capital threshold and optimizing the labor structure—formed by industrial specialization, the capital threshold, and the labor structure—through synergy with industrial specialization, which positively affects insufficient capital allocation and excessive labor allocation and strengthens and complements the improvement effect of industrial specialization on resource misallocation [22, 23]
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