Impact of Manufacturing Agglomeration on the Green Innovation Efficiency—Spatial Effect Based on China’s Provincial Panel Data

Abstract

Improving the efficiency of green innovation has become an urgent issue in the transformation of manufacturing industries in most developing countries within the context of increasing resource scarcity and environmental constraints. As an important feature of manufacturing development, agglomeration also plays a substantial role the promotion of technological progress and green transformation. Taking China as an example, this paper investigates the spatial impact of manufacturing agglomeration (MAGG) on green innovation efficiency (GIE). We first measure the level of MAGG and GIE in 30 provinces (autonomous regions and municipalities) in China during the period from 2010 to 2019, and then we utilize the spatial Durbin model in order to empirically test the spatial effect and heterogeneity based on theoretical analysis. The findings demonstrate that (1) the overall GIE in China has maintained a steady increase, and the level of MAGG slowly decreased from 2010 to 2019 with characteristics of obvious regional non-equilibrium and spatial correlations; (2) MAGG has a significant effect on the improvement of GIE nationally; (3) under the constraints of regional heterogeneity, the impacts of MAGG on GIE show significant differences between eastern, central and western China; (4) in terms of industry heterogeneity, high-tech MAGG can significantly enhance local GIE, while the indirect effect of non-high-tech MAGG is significantly negative. Our findings not only contribute to the advancement of studies pertaining to industry agglomeration and innovation, but also present policy implications for China and the world at large in terms of the development of high-quality and green economy.