An Analysis on the Spatial Effect of Absorptive Capacity on Regional Innovation Ability Based on Empirical Research in China

Abstract

Innovation is the primary driving force for development and the core of green, healthy, and sustainable economic development. This paper researches the spatial effect of absorptive capacity on regional innovation capacity from the perspective of knowledge spillover. We use the seven dimensions such as R & D intensity to build an absorptive capacity index evaluation system. After statistical verification, we select the most suitable empirical model, the dynamic Spatial Durbin Model with two-way fixed effect. The empirical results show that: (1) The promotion effect of absorptive capacity on knowledge spillovers in one province has no obvious effect on innovation promotion in other provinces, especially provinces at similar economic levels. However, it tends to inhibit the innovation development of neighboring provinces. (2) The impact of absorptive capacity on promoting knowledge spillovers varies from region to region. The eastern provinces of China are not affected by the absorptive capacity of neighboring provinces. The regression results of the central and western regions are not substantially different from the full sample. This study puts forward some policy suggestions based on the empirical results. It shows that a higher absorptive capacity does not mean better performance. The Chinese government should thus promote innovation in different provinces according to the local conditions.