Innovation Spillovers Research Articles

The green innovation spillover effect of enterprise digital transformation: Based on supply chain perspective

In the process of constructing green supply chains, how to incentivize suppliers to participate in green innovation is the main challenge. This paper investigates whether digital transformation of customers (CDT) can enhance green innovation of suppliers (SGIT) based on the theoretical framework of resource dependence theory and digital empowerment theory. Paired data of Chinese A-share listed companies and their major customers from 2010 to 2020 are used in this study. The conclusions show that: (1) CDT can significantly enhance SGIT. For economic significance, CDT contributes to an 18 % increase in green patent applications of suppliers. The conclusion remains robust after a series of tests. (2) The main influence mechanisms include: a) increasing the demand for green innovation (DE), and b) facilitating the spillover of digital technologies (SP). (3) Heterogeneity analysis shows that: CDT can more significantly drive SGIT in samples with higher customer concentration. (4) The effect of CDT on SGIT is more significant for suppliers with lower uncertainty and less environmental pollution. (5) The impact of CDT on SGIT is more significant in samples where customers and suppliers are geographically closer. The findings enhance the understanding of digital transformation and offer some insights for promoting green innovation.

Driving Effects and Spatial Spillover of Technological Innovation on the Carbon Balance of Agriculture

<p style="text-align:justify"><span style="font-size:10.5pt"><span style="line-height:150%"><span style="font-family:Calibri,sans-serif"><span lang="EN-US" style="font-size:12.0pt"><span style="line-height:150%"><span style="font-family:"Times New Roman",serif">There is significant controversy over the overall effects of technological innovation on carbon balance. Based on panel data of agriculture from 28 provinces in China from 2009 to 2021, utilizing ArcGIS and spatial Durbin model, the spatial-temporal patterns of agricultural technological innovation and carbon balance are analyzed, and furtherly the spatial effects of technological innovation on carbon balance are examined. The results indicate: (1) the overall agricultural carbon surplus in Chinese provinces has been continuously increasing from 2009 to 2021; (2) the direct effect of technological innovation on the carbon surplus in agriculture is significantly positive, while the spatial spillover effect is significantly negative; (3) the mediating effect results show that technological innovation affects the output of the agricultural sector and thereby influences agricultural carbon balance; (4) the impact of technological innovation on agricultural carbon balance exhibits an asymmetric spatial spillover effect. Advantageous regions suffer from the positive effects of spatial spillover, while non-advantageous regions benefit from the negative impacts of spillover, resulting in an overall negative effect. This study's findings play an important role in addressing the existing controversy over the overall effects of technological innovation on carbon balance and provide important insights for formulating policies on low-carbon technological innovation in agriculture.</span></span></span></span></span></span></p>

Research on Green Innovation Spillover Effects of Peers Issuing Green Bonds: Evidence from China’s Green Bond Market

Green innovation plays a crucial role in fostering economic growth alongside environmental preservation. This study investigates the relationship between the issuance of green bonds and green innovation among peer companies, utilizing green patent data. The findings reveal that the issuance of green bonds significantly bolsters the level of green innovation among peer companies. Strategic innovation appears to be more pronounced than substantive innovation. The mechanism analysis indicates that the issuance of green bonds influences peer companies to engage in green innovation activities by alleviating their financing constraints and increasing their level of R&D investment. The heterogeneity analysis reveals that the impact of green bond issuance on green innovation among peer companies is particularly pronounced in capital-intensive companies and industries with high concentration. This study not only contributes evidence to the theory of “peer learning” but also provides a theoretical basis for expanding the economic benefits associated with green finance.

Territorial Patterns of European Innovation in the Context of Different Innovation Output Proxies: A Spatial MGWR-SAR Approach

AbstractThe paper seeks to explore the drivers of European innovation represented by three innovation outputs (patent, trademark, and design applications), emphasizing spatial autocorrelation and heterogeneity. It includes data from 202 regions from 22 European Union (EU) Member States, along with 18 regions from Switzerland, Norway, and Serbia in 2019, providing a more comprehensive geographic scope. By considering multiple indicators of innovation output, including patents, trademarks, and design applications, the main objective is to examine spatial innovation spillovers and the heterogeneous responses of regional innovation output to innovation inputs in the context of European regions. To achieve this goal, the main instrument of the analysis is a newly proposed methodological framework called Mixed Geographically Weighted Regression-Spatial Autoregressive (MGWR-SAR) models. The analysis suggests that while all innovation inputs (most-cited publications, research and development expenditure in the business sector, human resources in science and technology, and population density) are justified in increasing all innovation outputs, the strength of particular determinants of innovation might vary across regions. Moreover, the analysis reveals valuable insights into how spatial spillovers influence regional innovation. The impact of spatial connections varies across the regions, with patents showing the strongest linkages, affecting about 92.27% of regions. Although trademarks and designs have fewer spatial connections (approximately 50% of regions), they still play a significant role in innovation. Although patents have traditionally dominated discussions of innovation, the findings reveal the importance of incorporating designs and trademarks as complementary indicators. Overall, the study highlights the need for multiple metrics to comprehensively evaluate innovations.

Does Government Digital Transformation Drive High-Quality Urban Economic Development? Evidence from E-Government Platform Construction

Digitalization represents a pivotal global development trend and serves as a significant force propelling economic and social transformation. This manuscript uses the global Malmquist–Luenberger (GML) model to estimate green total factor productivity (GTFP) across 284 Chinese cities from 2003 to 2018, taking the pilot policy of “construction and application of e-government public platforms based on cloud computing” as an example to assess the impact of government digital transformation on the qualitative development of the economy by using a difference-in-differences model to explore the path of its role and driving mechanism. The results reveal that government digital transformation promotes the qualitative improvement of the city’s economic development, and its driving effect shows a marginal incremental law. Moreover, government digital transformation can contribute to the formation of a “latecomer advantage” in the lagging regions, which creates a “catch-up effect” on the regions with favorable development foundations, excellent geographical conditions, high urban ranking, and high education quality. Additionally, government digital transformation boosts economic and social development quality through both innovation spillover and structural optimization.

Coordination dynamics between fuel cell and battery technologies in the transition to clean cars

Significant progress reconciling economic activities with a stable climate requires radical and rapid technological change in multiple sectors. Here, we study the case of the automotive industry's transition to electric vehicles, which involved choosing between two different technologies: fuel cell electric vehicles (FCEVs) or battery electric vehicles (BEVs). We know very little about the role that such technological uncertainty plays in shaping the strategies of firms, the efficacy of technological and climate policies, and the speed of technological transitions. Here, we explain that the choice between these two technologies posed a global and multisectoral coordination game, due to technological complementarities and the global organization of the industry's markets and supply chains. We use data on patents, supply-chain relationships, and national policies to document historical trends and industry dynamics for these two technologies. While the industry initially focused on FCEVs, around 2008, the technological paradigm shifted to BEVs. National-level policies had a limited ability to coordinate global players around a type of clean car technology. Instead, exogenous innovation spillovers from outside the automotive sector played a critical role in solving this coordination game in favor of BEVs. Our results suggest that global and cross-sectoral technology policies may be needed to accelerate low-carbon technological change in other sectors, such as shipping or aviation. This enriches the existing theoretical paradigm, which ignores the scale of interdependencies between technologies and firms.

COVID‐19 and global value chains: A discussion of arguments on value chain organisation and the role of the WTO

AbstractWe conduct an in‐depth analysis of the reasons for changes in global value chains as a result of COVID‐19 both from a positive angle, analysing expected changes in the behaviour of firms, and from a normative angle, assessing the different arguments for policy interventions by governments. The analysis generates three main conclusions. First, the COVID‐19 pandemic could contribute to diversification of sources of supply whose extent will vary by sector depending on the costs of value chain reorganisation. The pandemic, by contrast, is not likely to contribute much to re‐shoring, the return of manufacturing activities to industrialised countries, which is more likely to be driven by pre‐existing trends such as rising factor costs in emerging countries, increasing uncertainty about trade policy, and robotization and automation of production. Second, the pandemic has led to increased attention to the provision of essential goods in situations of crisis. Third, the largest risk for the global economy in the aftermath of the pandemic is a move away from open, non‐discriminatory trade policies, which would jeopardise the large benefits of open trade regimes in the current global economy characterised by scale economies, innovation spillovers, and a global division of labour.

How does factor market distortion affect green innovation? Evidence from China's sustainable development demonstration belt

AbstractGreen innovation meets the simultaneous demands of green and innovation‐driven development models when it is deemed as a key to realizing a green economic transition. However, factor market distortion impedes China's green development through factor mobility and resource allocation. Under such circumstances, we detect whether and how factor market distortion affects green innovation from various perspectives in the case study of China's Sustainable Development Demonstration Belt. The findings demonstrate that the distortion has a pronounced inhibiting effect on the green innovation growth in the study area. For the eastern and more‐developed cities, factor market distortion considerably inhibits green innovation improvement, while the impact is less pronounced in the western (or central) and less developed cities. Furthermore, the factor market distortion negatively affects green innovation through some effective paths, like energy efficiency and environmental regulation. From a spatial perspective, the green innovation's spillover effect could be reduced by both the distortions of the labor market and capital market. Thus, this study would provide strong theoretical support for enhancing the factor market system and improving the multiregional green innovation power in China, as well as scientific suggestions on transitioning to China's sustainable development.

Customer-driven value creation in the digital economy: Determining the role of customer firms’ digital transformation on supplier performance in China

This study examines how customer firms’ digital transformation affects the performance and value creation of their suppliers in the Chinese context. We use text mining to construct digital transformation indicators for customer firms based on data from Chinese A-share-listed firms from 2011 to 2021. We find that customer firms’ digital transformation has a positive and significant impact on supplier performance, and this effect is robust to various sensitivity tests. We also find that customer firms’ digital transformation influences supplier performance through two mechanisms: demand push and innovation spillover. Moreover, the heterogeneity analysis reveals that the effect of customer firms’ digital transformation on supplier performance varies by different factors, such as geographic distance, customer concentration, ownership type, and industry type. This study contributes to the literature on supply chain value from a customer-driven perspective and provides practical implications for supply chain firms to leverage digital transformation to enhance their performance and competitive advantage.

Innovation spillovers within business groups: Evidence from Korean chaebols

This study examines innovation spillovers within business groups, focusing on Korean chaebols. We find that an affiliated firm's innovation is affected positively by both within- and outside-group innovation spillover pools. Specifically, the impact of the within-group pool is more pronounced than that of the outside-group pool. We further find that within-group spillovers are stronger for affiliates with closer internal business relationships and for those whose controlling shareholders have higher group- or firm-level equity stakes. Finally, we show that greater within-group innovation spillovers lead to higher group-level innovative performance. Overall, our study suggests a pivotal role of business groups in promoting corporate innovation via effective innovation spillovers. (JEL G15, G30, O32, O33).

How Environmental Policy Stringency, Foreign Direct Investment, and Eco-Innovation Supplement the Energy Transition: New Evidence from NICs

Several researchers have studied the environmental policy stringency and ecological innovation regarding CO2 emissions and renewable energy consumption; however, the impact of environmental policy stringency, technological innovation, FDI, and ecological innovation on energy transition has not been studied in the case of NICs. For this purpose, panel quantile regression models are applied in the context of NICs from 2000 to 2021. Our empirical results show that the effect of foreign direct investment is positive and statistically significant on energy transition. On the other hand the variables environmental policy stringency, eco-innovation, and ICT-trade have an inverse effect on energy transition. Therefore, the findings of the study also provide policy implications that indicate NICs need to optimize their trade structure and re-innovate the latest innovation spillovers, and strict environmental policies should be introduced to facilitate energy transition in NICs.

Asset pricing and the carbon beta of externalities

Climate policy needs to set incentives for investors who face imperfect, distorted markets and large uncertainties about the costs and benefits of abatement. These investors decide on uncertain investments according to their expected return and risk (carbon beta). We study carbon pricing and financial incentives in a consumption-based asset pricing model distorted by technology spillovers and time-inconsistency. We find that both distortions reduce the equilibrium asset return and delay investment in abatement. However, their effect on the carbon beta and the risk premium for abatement can be decreasing (when innovation spillovers are not anticipated) or increasing (when climate policy is not credible). We show that the distortions can be overcome by modified carbon pricing by a regulator, or by financial incentives, implemented in our model by a long-term investment fund. The fund pays a subsidy to reduce technology costs or offers financial contracts to boost investment returns to complement the carbon price. The investment fund can thus pave the way for carbon pricing in later periods by preventing a capital misallocation that would be too expensive to correct, thus improving the feasibility of ambitious carbon pricing.

Understanding the Relationship Between Immigration and Innovation: A Systematic Review and Meta-Analysis

The relationship between immigration and innovation has become an urgent topic of discussion in the USA and in the European Union due to the current migration patterns and the crucial role played by innovation as a driver of growth in modern economies. The present study is a systematic review regarding the investigation of the status of the research on immigration, ethnic diversity, and their impact on innovations, especially at the firm’s organisational level. With a focus on high-skilled immigrants, a closer examination of the link between migration and economic performance of the private sector has been conducted during the research. The paper will focus on the elements that impact the contributions of migrants towards the total level of innovation of host countries. Cultural diversity, demographic agglomeration forces, and the educational backgrounds of newcomers are identified as drivers of innovation which influence patenting activity. Additionally, the research provides an overview of the positive influence of migration on innovation spillovers, taking into account its ability to isolate the channels concerning education history and labour supply that lead to this beneficial effect. The evidence suggests that immigrants contribute to the overall level of economic growth and innovation in destination countries, as spillovers of entrepreneurial capabilities and scientific and technological knowledge appear to be fundamental to innovation in host countries. Nonetheless, policy-makers are presented with expected outcomes, as well as no evidence to suggest that migration is detrimental to a strong research and development sector.

How does the development of the digital economy affect innovation output? Exploring mechanisms from the perspective of regional innovation systems

This paper explored the paradigm shift in spatial innovation dynamics driven by the rapid emergence of the digital economy (DIGE) through the lens of the regional innovation system (RIS). By integrating DIGE, RIS, and innovation output into a unified analytical framework, this study examined the impact and mechanisms of DIGE on innovation output across 330 Chinese cities from 2011 to 2020. Results show that DIGE development significantly contributes to innovation output. This contribution is mediated by DIGE's strengthening of the RIS, primarily through its facilitation of integration into innovation networks and enhancement of the innovation environment. Regional heterogeneities are evident in the innovation-promoting influence of DIGE, with less developed cities, cities with underdeveloped infrastructure, and smaller cities benefiting more significantly. While the direct impact of DIGE on large central cities is subtle, their pivotal positions enable them to radiate and disseminate innovation spillovers to connected cities through extensive cooperative networks. This study underscored the potential of leveraging DIGE, especially in disadvantaged regions, to cultivate robust and synergistic RIS and act as catalysts for augmented innovation output.

Environmental awareness and firm creation

PurposeThis study tests whether environmental awareness affects firm creation by using Google Trends data and a novel region-level data set from Italy.Design/methodology/approachForward-looking entrepreneurs drive firm creation. The authors hypothesize that more environmentally conscious entrepreneurs will emerge as environmental awareness rises, increasing the number of green and energy firms. The authors test the prediction using Google Trends data and a novel region-level data set from Italy.FindingsThe authors find that not only the number of green and energy-innovative firms but also that of all innovative start-ups increases with rising environmental consciousness. The results imply some “innovation spillover” effects from green sectors to other industries with rising environmental awareness.Originality/valueThe paper hypothesizes that as environmental awareness rises, more environmental-conscious entrepreneurs will emerge, which would increase the number of green and energy firms. Robustness and falsification tests are also offered.

Innovation Spillovers Across U.S. Tech Clusters

Innovation Spillovers Across U.S. Tech Clusters

Human Capital, Business Environment Optimization and Foreign Enterprise Innovation

Under the background that business environment optimization has become a new competitive advantage in cultivating investment and technology introduction, the influence of business environment optimization in developing countries on the innovation willingness of foreign-funded enterprises and the moderating effect of human capital of foreign-funded enterprises are investigated. The results show that: the business environment optimization reduces the willingness of foreign enterprises to carry out technological innovation, process innovation and product innovation, and the average marginal effect increases in turn; The internal mechanism is the reduction of preferential degree of foreign enterprises and the enhancement of competitive power of domestic enterprises brought about by the optimization of business environment. The human capital of foreign-funded enterprises enhances the effect of business environment optimization on their innovation willingness, and this is achieved by enhancing the preferential degree of foreign-funded enterprises, reducing the inhibition of their innovation willingness, and promoting the competitiveness of domestic enterprises by optimizing the business environment. It is further found that the introduction of foreign enterprises has a significant innovation spillover effect, and the absorption capacity of domestic enterprises has a positive regulatory effect.

Spatial spillover effects of urban innovation on productivity growth: A case study of 108 cities in the Yangtze River Economic Belt.

The spatial spillover of urban innovation has increasingly become an important factor affecting urban total factor productivity (TFP) growth. Based on the panel data of 108 cities in the Yangtze River Economic Belt from 2004 to 2020, this paper illustrates the spatial-temporal evolution trend of urban innovation and manufacturing total factor productivity and uses the spatial Dubin model to study the direct and indirect effects of urban innovation on manufacturing total factor productivity. The main conclusions are as follows:(1)Spatial correlation and heterogeneity between urban innovation and manufacturing total factor productivity prove to be significant in the Yangtze River Economic Belt;(2)Urban innovation has a significant positive impact on manufacturing total factor productivity and has a positive spillover effect on surrounding cities; (3)The effect of urban innovation on manufacturing total factor productivity varies with time and region;(4) Mechanism analysis shows that talent agglomeration significantly promotes the positive impact of urban innovation on manufacturing total factor productivity, while the spillover effect is insignificant.

Beyond the borders: Estimating the effect of China's Bonded Zones on innovation and its spillovers

This paper investigates the direct and spillover effects of place-based industrial policies on firm innovation activities, with a focus on the establishment of Bonded Zones (BZs) in China. By exploiting the temporal, spatial, and industrial variations in the policy, we demonstrate that the establishment of BZs promotes significantly patent applications and citations of firms in leading industries located within and outside of BZs. We also provide suggestive evidence that the innovation spillovers are mainly due to competition among firms within and outside of BZs, namely, the Marshallian externalities.

When your friend takes a fall: Spillovers of patent infringement lawsuits on firm innovation via cross-owners

Patent infringement lawsuits profoundly affect firms' innovation decisions, but few studies explore their spillover effects. In this paper we examine whether patent infringement lawsuits affect innovation of firms not involved but sharing cross-owners with the involved. Using the PSM-DID method and Chinese A-share listed firms’ data from 2009 to 2020, we find that after sued cross-held firms encounter patent infringement lawsuits, uninvolved focal firms increase innovation investment significantly. Information transmission from cross-owners is the important mechanism. Additionally, when sued cross-held firms and uninvolved focal firms belong to the same dialect region, industry, or uninvolved focal firms are non-SOEs, the innovation spillovers of patent infringement lawsuits are more obvious. Finally, we show that after uninvolved focal firms promote innovation input, their current and future innovation output goes up as well. Our study reveals the innovation spillovers of patent infringement lawsuits and expands research on inter-firm interaction through cross-owners.