FIRM LOCATION and INNOVATION: EVIDENCE from CHINESE LISTED FIRMS

Jian Xu; Xi Yang; Daqi Xin; Wencang Zhou; Xiaoyang Zhu

doi:10.1142/S1084946719500262

FIRM LOCATION and INNOVATION: EVIDENCE from CHINESE LISTED FIRMS

Jian Xu, Xi Yang, Daqi Xin, Wencang Zhou, Xiaoyang Zhu

Management

Research output: Contribution to journal › Article › peer-review

5 Scopus citations

Abstract

Matching city-level and province-level GDP data with firm headquarters' locations for a sample of Chinese listed firms from 2003 to 2015, we find that firm locations are positively and significantly associated with firm innovation. In addition, firms with higher government grants have higher R&D inputs. The gap between firms' innovation performance in ordinary cities and in non-ordinary cities is not significant in the eastern region; however, the gap is significant in the central and western regions of China. Finally, we use firm relocation to tackle the endogeneity issue and find that firms relocated to cities with larger size of economy are associated with higher innovation performance.

Original language	English
Article number	1950026
Journal	Journal of Developmental Entrepreneurship
Volume	24
Issue number	4
DOIs	https://doi.org/10.1142/S1084946719500262
State	Published - 1 Dec 2019

Keywords

China
Innovation
headquarter relocation
location

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title = "FIRM LOCATION and INNOVATION: EVIDENCE from CHINESE LISTED FIRMS",

abstract = "Matching city-level and province-level GDP data with firm headquarters' locations for a sample of Chinese listed firms from 2003 to 2015, we find that firm locations are positively and significantly associated with firm innovation. In addition, firms with higher government grants have higher R&D inputs. The gap between firms' innovation performance in ordinary cities and in non-ordinary cities is not significant in the eastern region; however, the gap is significant in the central and western regions of China. Finally, we use firm relocation to tackle the endogeneity issue and find that firms relocated to cities with larger size of economy are associated with higher innovation performance.",

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AU - Xu, Jian

AU - Yang, Xi

AU - Xin, Daqi

AU - Zhou, Wencang

AU - Zhu, Xiaoyang

PY - 2019/12/1

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N2 - Matching city-level and province-level GDP data with firm headquarters' locations for a sample of Chinese listed firms from 2003 to 2015, we find that firm locations are positively and significantly associated with firm innovation. In addition, firms with higher government grants have higher R&D inputs. The gap between firms' innovation performance in ordinary cities and in non-ordinary cities is not significant in the eastern region; however, the gap is significant in the central and western regions of China. Finally, we use firm relocation to tackle the endogeneity issue and find that firms relocated to cities with larger size of economy are associated with higher innovation performance.

AB - Matching city-level and province-level GDP data with firm headquarters' locations for a sample of Chinese listed firms from 2003 to 2015, we find that firm locations are positively and significantly associated with firm innovation. In addition, firms with higher government grants have higher R&D inputs. The gap between firms' innovation performance in ordinary cities and in non-ordinary cities is not significant in the eastern region; however, the gap is significant in the central and western regions of China. Finally, we use firm relocation to tackle the endogeneity issue and find that firms relocated to cities with larger size of economy are associated with higher innovation performance.

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KW - Innovation

KW - headquarter relocation

KW - location

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FIRM LOCATION and INNOVATION: EVIDENCE from CHINESE LISTED FIRMS

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