Abstract
ABSTRACT Economic activities among cities are not mutually independent; rather, they exhibit significant spatial associations. Real estate prices also demonstrate a certain degree of spatial interdependence. Diverging from most of the relevant researches neglecting the existence of spatial spillover effect, our study employs spatial Durbin models for an in-deep investigation into the spatial spillover effects of housing prices on innovation within the Yangtze River Economic Belt. Furthermore, our study explores the talent agglomeration channel. In many studies on housing prices and innovation, the focus has often been on the channel of labour mobility, with limited in-depth exploration of labour characteristics. Our findings reveal the following: (1) An increase in housing prices stimulates innovative activities in local cities but hinders innovation in surrounding cities. (2) In the midstream and downstream regions of the Yangtze River Economic Belt, the escalation of housing prices fosters innovation in cities but suppresses innovation in surrounding cities. Conversely, in the upstream region, the rise in housing prices inhibits innovative activities both locally and in surrounding cities. (3) The talent agglomeration channel underscores regional disparities in the impact of housing prices on talent agglomeration, highlighting the significant role of talent agglomeration in the impact of housing prices on innovation. These results remain robust when subjected to tests, including the instrumental variable method, alternative spatial matrices, and alternative housing price measures. Highlights The study examines the spatial effects of escalating housing prices on innovation. The spatial Durbin models are employed to examine spatial effects. The spatial effects are heterogeneous in different regions. The study examines the talent aggregation channel.
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