Knowledge spillovers: Evidence from regional high-tech industries of China

This paper examines the effect of knowledge spillovers on regional industries' knowledge output. The function of knowledge is proposed and applied to a panel dataset of five industries in 30 provincial units from 1996 to 2005. The estimates show that interindustry knowledge in own region as well as intra and interindustry knowledge in other regions play significantly positive impact on regional industries' knowledge output. The sales of new products (NP) increased by 0.13%, other industries' R & D increased by 1% in this region; The number of patent application as dependent variable, inter-industry and intra-industry knowledge spillovers in other regions promote this industry' knowledge output, whose elasticity is 0.44 and 0.17 respectively. Interindustry knowledge spillover and own R&D effects complement each other in promoting productivity.