Inbound Tourism as a Driving Force for Regional Innovation: A Spatial Impact Study on China

Abstract

Cross-border flows of people, capital, and information along with inbound tourism flows can act as an important vehicle that benefits the innovation system in tourism destination areas. This study addresses the unintended but far-reaching impact of international tourism by focusing on the influence of inbound tourism on regional innovation in China. Data from 30 Chinese provinces for the years 2003–2012 are used for the empirical analysis, employing a spatial panel data model. The results show that inbound tourism may be a new and powerful driving force for regional innovation, while the effect of inbound tourism on technological innovation appears to be weaker than that on social innovation. Our findings also show that a higher market percentage of domestic tourism may weaken the impact of inbound tourism. Furthermore, the impact of inbound tourism on innovation tends to be relatively stronger in the richer and more internationally oriented provinces of China.